It was a scary time for Ripple Labs when the US Securities and Exchange Commission filed charges against them. People were quick to react, saying, “XRP is done!” Or even more extreme comments like “Looks like they’ll never recover.” These are instances of people’s talk after news broke that two Ripple executives would likely face trial.
Four months ago, the critics said XRP couldn’t grow. But since then, it’s gone from strength to strength and is currently trading at a healthy $1.38. The highest point in three years. On 24th December, two days after filing the lawsuit, the crypto had a value of $0.26.
It isn’t easy to pinpoint what exactly has fueled this turnaround. But, one can argue that one factor, in particular, contributed most to XRP’s present price action- The SEC’s lawsuit against Ripple.
Thank You, SEC?
The truth of the adage “Any publicity is good publicity.” And, “news moves prices” might be more accurate for Ripple and XRP.
Come to think of it, the lawsuit by the SEC should have been nasty for the business. And so, XRP’s resurgence is a surprise to many people. It has climbed up the charts, which most investors didn’t expect to reach a three-year high.
Analyzing the Charts below, it is evident that a single lawsuit fueled the crypto’s appreciation more than anything else.
Source: XRP/USD on TradingView
Take the top legal developments of the last six months and vary them with the effects of crypto prices.
After the SEC filed their lawsuit on 22nd December, cryptocurrency prices dropped by over 50% in just 48 hours.
Magistrate Judge Sarah Netburn ruled that the personal financial records of defendants are irrelevant to this case. Thus, leading to XRP shooting up by almost 35%.
Then on day two of their filing motions to dismiss with regards to SEC’s amended complaint once again saw another 32% increase in value over two days.
Other factors that play a role in the XRP price surge
With all this news coming out, it’s clear that blockchain is becoming more and more of a reality. The Wanchain team not only announced the release date but also showed off some new partnerships with XRP.
Just last week, we heard about Ripple acquiring 40% equity in Asian cross-border payments firm Trango. The firm uses XRP for instant transactions across borders.
Then not too long ago, Novatti Group revealed its plan on tapping into the R liter net by utilizing ODL Services. Thus, leveraging crypto so you can get your money fast anywhere around the world without any fuss or hassle.”
So yes, there have been developments. Indeed the legal proceedings involving XRP have not affected its price.
The more people are talking about a digital asset, the stronger its market value will become.
One of the most vocal communities in crypto is, no doubt, XRP. It was hilariously evident when the Court decided to issue an order telling people not to call their phone conference line early.