The price of XRP, the cryptocurrency associated with Ripple Labs, has soared to its highest level since March 2022 following a ruling on the lawsuit against Ripple Labs by the US Securities and Exchange Commission (SEC). This surge in price has been accompanied by a significant increase in the asset’s total market cap and trading volume.
The XRP price experienced a significant jump of over 73% to reach an intraday high of $0.9380. As a result, the total market cap of XRP has risen by more than 80% within the past day, reaching $41.25 billion. This surge has propelled XRP to become the fourth-largest cryptocurrency, surpassing Binance Coin (BNB). Additionally, the trading volume of XRP has skyrocketed by a staggering 1,724.63% over the same period.
Several factors have contributed to the driving force behind XRP’s price increase. Firstly, the ruling on the SEC vs Ripple lawsuit has had a significant impact on market sentiment. Ripple Labs, the company behind XRP, has successfully defended against a significant portion of the SEC’s enforcement case regarding the sale of XRP tokens. This victory in court, after more than three years of litigation, has boosted investor confidence in XRP.
US District Judge Analisa Torres agreed with Ripple Lab’s argument that approximately half of the XRP sales did not violate federal investor-protection laws. Ripple maintained that XRP, designed to facilitate cross-border payments, should not be classified as a security. However, Judge Torres ruled that XRP is indeed a security when sold exclusively to institutional investors. This ruling represents a partial win for the SEC and a clear win for Ripple Labs.
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The positive outcome of the lawsuit has contributed to XRP’s price surge of over 70%. Year-to-date, the price of XRP has appreciated by more than 130%. This ruling also bolsters the claims made by major cryptocurrency exchanges, such as Binance and Coinbase, that are facing similar allegations by the SEC. In the SEC’s lawsuit against these exchanges, various cryptocurrencies including Polygon, Cardano, and Solana were classified as securities.
An analysis of the XRP price chart reveals that the recent surge has propelled it to its highest level this year. This surge has resulted in XRP surpassing various moving averages, including the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. The Relative Strength Index (RSI) is currently at 79, indicating that the asset is in the overbought zone.
However, it is important to note that the current surge in XRP’s price may be short-lived. Traders anticipate a price reversal in subsequent trading sessions, with the next important level to watch being $0.5850. A breach above the resistance level of $0.8575 would invalidate this cautiously bearish thesis.
In conclusion, the recent ruling on the SEC vs Ripple lawsuit has propelled the price of XRP to its highest level since March 2022. The victory for Ripple Labs in court has instilled confidence in investors, leading to a significant increase in XRP’s market cap and trading volume. This surge in price has also positively influenced the overall sentiment of the crypto market, with other cryptocurrencies also experiencing significant gains. However, traders should remain cautious as the possibility of a price reversal looms in subsequent trading sessions.
