2 Possible Reasons Why Ripple (XRP) Price Skyrocketed 50% in a Week

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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.

img1_xrp_chart_2309
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.

img1_xrp_santiment
Source: Twit­ter
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