XRP’s price skyrocketed by over 50% in the past week. Here are two possible reasons why.
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XRP is the best-performing cryptocurrency in the past seven days, and it’s not even close. Trading at around $0.50, it’s up by more than 50%, leaving all other major altcoins in the dust.
This has had the entire community speculating on possible reasons, so we take a look at two of them that might have caused the surge.
The Ripple-SEC Case
The case between the US Securities and Exchange Commission and Ripple is one that the entire industry is looking at, for the way it ends might have serious implications on other projects as well.
However, Ripple’s legal counsel has demonstrated a predominantly confident stance that XRP is not, by any means, security and has even gone so far as to attack the Commission, citing lack of “investment contract” granting investors rights.
As CryptoPotato reported a few days earlier, Ripple alleged that the SEC’s “untethered position” could deem the sale of all types of ordinary assets, including commodities such as gold, diamonds, soybeans, and so forth – into sales of securities. The company’s counsel also added that the watchdog hasn’t received such authority by Congress.
Interestingly enough, both Ripple Labs and the Securities and Exchange Commission filed two separate motions that called the Southern District Court of New York to make an immediate ruling on whether the XRP sale violated the securities regulations.
This means that, if put forward, the case won’t go any further and may be resolved as quickly as the next few months.
This has obviously had a very positive impact on XRP’s price, and it appears that the market is expecting a positive outcome.
Source: Binance via TradingView
Whales Accumulate XRP
Data from the popular crypto resource Santiment also reveals that large XRP addresses have been in accumulation mode for quite a while.
This has resulted in the price of XRP hitting a one-year high against BTC at 0.000025 BTC. The analytics resource also seems to be of the opinion that the main reason for that is the continued optimism of a potential settlement between the SEC and Ripple.
Active shark and whale addresses holding 1m to 10m XRP have been in accumulation pattern since late 2020.
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