Ripple Lab’s native token, XRP, seem to have slowed down in recent days after establishing a good run. Between Sept. 18 and Sept 22, the blockchain-based digital payment network’s cryptocurrency spiked more than 61% from $0.3418 to $0.5518.
It should be noted that despite a 7.6% drop in the last 3 days; during the Sept. 18 – Sept. 22 period- XRP gained value as it survived several external influences linked to inflation and global economics.
Obviously, XRP’s strong surge is the result of more investors believing that the legal case between Ripple and the Securities and Exchange Commission (SEC) might soon be resolved. Last week Ripple filed a motion asking a judge for summary judgment, which would end the case without going to trial.
If the judge rules in favor of the summary judgement, which the SEC seems to favor as well, XRP’s surge of more than 61% over the past week could be an indicator of some genuine momentum for the cryptocurrency from here on out.
In fact, after 3 months of sideways trading, it looks like XRP is finally ready to make its next move. The key level to watch on the yearly chart is $0.60, which has acted as support in the past. If XRP can breakout above this level, it could go on a run to $0.70 or even $8.00. However, if it fails to break out, it could retrace back to $0.40.
The SEC vs. Ripple lawsuit
The SEC has accused Ripple of violating securities laws, and the case is currently in court. Ripple denies the charges, arguing that XRP is not a security. The outcome of the case will have major implications for the cryptocurrency industry.
If Ripple is found guilty, it could set a precedent that would make it harder for other cryptocurrencies to avoid being classified as securities. On the other hand, if Ripple is cleared of all charges, it could give cryptocurrencies a boost of legitimacy. Either way, the SEC versus Ripple case is one of the most important legal battles in the history of cryptocurrency.
As of press time, XRP is changing hands at $0.5121, up 3.40%. The $25 billion market cap altcoin traded in a range of $0.474 – $0.518, indicating volatility over the last 24 hours.
Disclaimer: This article is provided for informational purposes only. It is not intended to be used as investment or financial advice
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