XRP from Ripple has managed to pull off a major reversal in its prices. Its price has broken past $0.70 which is also the highest closing point in a week over the past three years. On the previous day, XRP’s price had undergone a surge of 17% pushing it beyond the $0.70 mark. The trading volume shot up 43.8% resulting in $8.8B in the last 24 hours as well.
Reasons Behind The XRP Surge
XRP has experienced such a surge for the first time since the SEC of the United States filed a lawsuit against the startup focused on blockchain. Allegedly, the company was involved in an illegal sale of its securities.
The fight has been continuing in the court for Ripple against the regulator. However, investors of the cryptocurrency are looking to put the allegation behind them as they show their willingness to take part in the wider rally that the crypto market is experiencing.
XRP prices have not been recorded to be past $0.70 since November of last year. However, soon after it started going downwards back then. With the lawsuit by the SEC filed in the last month of 2020, the cryptocurrency’s prices were in an absolute downwards spiral. Many partners of Ripple began to put distance between them and the XRP blockchain to avoid being scrutinized by the SEC.
However, as far as the lawsuit is concerned, Ripple has pleaded complete innocence and remains resolute in its claim. The startup has continued in expanding its presence in Asia. Recently, 40% of Tranglo, a FinTech startup based in Malaysia, was acquired by Ripple. Ripple expects to introduce faster and more efficient solutions for payment for the region through the acquisition.
Technical indicators have pointed to a period of increase for XRP as the $0.70 was considered crucial resistance. As such, it can be safely said that the altcoin is finally going the way of most altcoins, up.