XRP is a payment cryptocurrency from Ripple. It has suddenly made some massive price gains within a short period of time, beating major coins such as Bitcoin, Ether, and others. The digital currency’s price rose almost 10% in a day. This development came after Ripple received positive news in its long-standing legal tussle with the U.S. financial regulatory authority. Moreover, volatility is the aspect that makes the hosting excited and thrill of using the potential bitcoin evolution in finding out the best typical result.
Bitcoin, Ether, BNB, Cardano, Solana, Avalanche, and Terra Luna have followed a more bearish trend. Bitcoin’s price fell below $40,000 per coin, after having touched $42,000-plus almost a week ago.
What Helped Push XRP’s Price?
The court allowed Ripple to rely on a ‘fair notice defense’ in the latest development. This meant that the platform gets an edge through a claim that the U.S. Securities and Exchange Commission (SEC) failed to inform it that its sales of XRP mean a potential violation of the American financial laws. This legal tussle has been going on for some time between Ripple, its executives, and the SEC.
The judgment made it clear that SEC failed to provide Ripple with fair notice. The SEC, on the other hand, had been attempting to prevent Ripple from seeking its defense on this clause. XRP’s price has been struggling for some time because of this lawsuit. The regulator accused the platform of selling its cryptocurrency as unregistered security before taking action in 2021.
The authority filed the suit against Ripple and its chief executive and co-founder. The accusation was that it sold over $1.3 billion worth of the coin between 2013 and 2020 without adhering to SEC’s rules. While the court’s decision was in favor of Ripple, it quashed the two executive’s request to dismiss the regulator’s individual charges against both of them.
A Need for Clearer Regulations
The crypto community in the U.S. has long been calling to make the regulations around cryptocurrencies to be made clearer. Once that happens, it is expected that many investors and companies will enter the crypto space.
The general crypto industry requires clarity in regulations before institutions can start getting involved on a larger scale. Once this clarity has been established and the market starts participating at a broader scale, a wide range of possibilities are expected to be opened in the crypto space in the U.S.
Certain developments in this direction have actually taken place the last week. The Biden admiration’s executive order on cryptos helped Bitcoin to see its prices soaring high before coming down this week. The order required different U.S. government agencies to investigate the risks linked to the underlying technology.
Can XRP Cross $1 Price?
SEC filed the lawsuit back in December 2020. Since then, many industry pundits and investors have assumed that XRP may not be able to survive in the long term. However, the move by the regulator seems to have only helped the digital currency in some unique ways.
For one, the courts have continued to pass rulings that favored the cryptocurrency company. Secondly, the lawsuit itself helped XRP gain some attention and thus interest.
With the latest judgment, Ripple can now argue that the SEC failed in the first place to inform it of the ways that selling XRP could be in violation of existing laws. Does this mean that Ripple’s coin is on its way to crossing the $1 mark?
While the altcoin’s price rose, it is important to realize that it was not organic growth. Some of the findings during this price rise were as follows:
- No positive change was recorded in terms of on-blockchain performance.
- There was a very small change in the transaction count. This meant that while the price rose, there was not much change in transaction participation.
- High volatility is seen as a factor why transactions have been steady.
XRP’s price has been at a 5-month high. Despite all these points, the court judgment win and the coin’s relatively higher market value could draw more investors. Since the coin has been able to retain its critical support of $0.71, it is expected that XRP has the chance of crossing $1 once again. In 2018, XRP hit a record high of above $3. There is no indication currently whether it will be able to reach its all-time high price or not.