XRP Bulls in Control: What’s Driving The Recent Price Surge?
While Ripple is battling the SEC in court, the XRP token displays incredible performance with an over 20% price increase over the past 24 hours. XRP moved forward to grab the first position among the top-gaining cryptocurrencies.
Aside from the greed flagged by the Fear and Greed Index as market sentiment improved, another factor might be responsible for the XRP price up.
The latest price surge comes in response to the heightened anticipation around the Ripple v. SEC lawsuit. The crypto community expects the two-year-long lawsuit to end in the first half of 2023.
XRP Token Records Massive Trading Volumes Amid Price Surge
Besides the Ripple lawsuit, XRP owes its performance partly to the South Korean crypto exchange Upbit. Upbit is driving an incredible amount of trading volume to the XRP network as the crypto exchange contributes over 19% of the XRP’s trading volume.
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XRP has witnessed a massive surge in trading volume beyond 325.81% in 24 hours. XRP trading volume as of March 21 stood at $1.19 billion, but it experienced a rapid surge to nearly $5 billion at press time.
According to Coinglass data, trading activities from other exchanges such as OKX, KuCoin, Binance, Coinsbit, and Bithumb are also responsible for the rally. This rapid rise in trading volume yielded increased liquidity on XRP.
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Coinglass data revealed that XRP liquidations have increased to $17.90 million over the past 24 hours, with short positions accounting for $12.44 million while longs got $5.46 million.
XRP May See Higher Highs If Ripple Prevails Over the SEC
Meanwhile, Ripple has filed additional support documents to bolster its defense on the SEC lawsuit. Ripple Labs cited a Supreme Court verdict in the Bittner v. the United States in the new filing.
Ripple and its lawyers argued that SEC failed to provide a clear guideline for securities laws that govern digital assets. According to Ripple’s argument, this failure on the SEC’s part has spread confusion and uncertainty among market participants across the crypto market.
The SEC has not provided guidance on what grounds crypto assets should be termed securities. However, despite the lacking regulatory clarity, the SEC has continued to hunt crypto firms.
The outcome of the Ripple/SEC lawsuit would determine what crypto tokens would trade as securities in the market. This case remains the most closely followed regulatory legal battle in the crypto industry as observers anticipate the court verdict.
Brad Garlinghouse, Ripple’s chief, is optimistic about the case’s outcome while noting that it would likely end in the first half of 2023. While the court proceedings continue, the XRP token price is on the rise as the broader crypto community anticipates the court verdict.
Featured image from Pixabay and chart from Tradingview.com