2 Possible Reasons Ripple (XRP) Price Soared 50% in One Week

XRP has been the best performing cryptocurrency for the past seven days and it’s not even close. Trading around $0.50, it has risen by more than 50%, leaving all other major altcoins in the dust.

This got the whole community speculating about possible reasons, so we take a look at two of them that could have caused the surge.

The Ripple-SEC case

The case between the US Securities and Exchange Commission and Ripple is one that the entire industry is looking at, as the way it ends could have serious implications for other projects as well.

However, Ripple’s legal counsel has taken a dominant position that XRP is in no way a security, and has gone so far as to attack the Commission, citing a lack of an “investment treaty” providing rights to investors.

As Hidden potato reported a few days earlier, Ripple claimed that the “disconnected position” of the SEC could consider the sale of all types of ordinary assets, including commodities such as gold, diamonds, soybeans and so on – to be securities sales. The company’s counsel also added that the watchdog has received no such authority from Congress.

Interestingly enough, both Ripple Labs and the SEC filed two separate motions asking the Southern District Court of New York to issue an immediate ruling on whether the sale of XRP violated securities regulations.

This means that, if brought forward, the case will not proceed further and may be resolved as soon as the next few months.

This obviously had a very positive impact on the price of XRP and it seems that the market is expecting a positive outcome.

img1_xrp_chart_2309
Source: Binance via TradingView

Whales hoard XRP

Data from popular crypto resource Santiment also reveals that large XRP addresses have been in hoarding mode for quite some time.

This resulted in the price of XRP reaching a one-year high against BTC at 0.000025 BTC. The analysis source also seems to be of the opinion that the main reason for this is the continued optimism of a potential settlement between the SEC and Ripple.

Active shark and whale addresses containing 1m to 10m XRP have been in an accumulation pattern since late 2020.

img1_xrp_sentiment
Source: Twitter
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