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Ripple’s XRP took a hit earlier this year due to the negative publicity it received as a result of the ongoing lawsuit filed against it by the Securities and Exchange Commission (SEC). However, its recent performance suggests that its fortunes are changing.
XRP is currently one of the top gainers in the crypto market today after rallying by more than 11% in the last 24 hours to $0.98. It has also achieved a 37% gain in the last 7 days, indicating that investors are finally starting to gain confidence in the cryptocurrency. XRP crossed above the $1 price level during yesterday’s trading session for the first time since early June.
XRP’s current performance indicates a strong recovery from the lows it achieved during the bearish market correction in June when it traded as low as $0.50. It has so far achieved a strong recovery for the last three weeks largely courtesy of the overall market’s bullish performance. Its latest price pump also reflects an uptick in buying volume and its price action is back above the 99-day moving average, confirming that the bulls are back in control.
Why is XRP surging today?
XRP has so far delivered an impressive performance in the last 24 hours and one would think that it is moving in tandem with the overall crypto market. However, most of the top cryptocurrencies have lost some of their gains during the same 24 hours. So far the global cryptocurrency market cap is down by 1.30% which means XRP has been going against the overall market direction. It also means XRP’s current rally is the result of some other market factors.
XRP went on a bullish run since yesterday’s trading session after it was revealed that the SEC refused to share some evidence discovery documents to Ripple’s legal team as ordered by the presiding judge. The U.S regulator’s failure to provide the documents was seen as a lack of enough evidence to support their lawsuit. It was also considered a substantial win for Ripple, thus favoring positive investor sentiments that are currently fueling XRP’s rally.
The SEC’s decision not to provide the required document might be the first sign pointing towards the end of the Ripple lawsuit, although there is no official confirmation about its end. However, that has not stopped XRP’s price action from recovering from some of the losses it took earlier this year due to pressure from the lawsuit. A complete withdrawal of the lawsuit or favorable settlement would likely pave the way for XRP to experience some more gains, potentially fueling a rally above $1.5. The cryptocurrency traded at such levels before the lawsuit fueled another rally for the cryptocurrency.
What does XRP’s future look like?
The legal battle is one of the biggest hurdles that have held back Ripple’s plans and subsequently prevented XRP from achieving its full potential. The elimination of that hurdle will be equivalent to unlocking a new level of growth because it will allow XRP to perhaps go public as previously claimed, and such a move would encourage banks to partner with the crypto company. Such a scenario would be a huge win for Ripple’s ODL plans and subsequently a major catalyst for XRP. However, that remains to be seen and is subject to the lawsuit which is still ongoing.
Hub: XRP price, news, and analysis
