XRP, the native cryptocurrency of the Ripple network, has seen its price surge by over 20% in the past 24 hours, as rumors of a potential settlement between Ripple and the U.S. Securities and Exchange Commission (SEC) circulated.
The token is now trading at its highest level since November of last year.
On Wednesday, XRP was trading at $0.45, with trading volumes exceeding $5 billion.
Coinglass data revealed that more than $17 million worth of XRP-tracked futures were liquidated, as some traders were caught offside.
The token’s market cap now stands at $22.64 billion, following an inflow of $2.86 billion in the past 24 hours.
Henry Liu, CEO of BTSE, commented on the situation, stating, “We’re seeing the XRP price jump by double digits and rally above its long-held resistance levels, as rumors filter through that Ripple and the SEC have possibly agreed to a settlement.” He added that the positive momentum was driven by the presumed resolution of the case in Ripple’s favor.
The recent price rally comes after a series of positive developments in Ripple’s ongoing legal battle with the SEC.
Earlier this week, Ripple defendants filed a new document in support of their fair notice defense, citing rulings on SEC objections in the Voyager Digital Holdings bankruptcy case.
Ripple (finally) filed the Voyage bankruptcy Judge's decision.
The Judge uses abnormally strong language, stating that the U.S. regulators themselves cannot even agree on what criteria to use in deciding whether crypto is a security (Fair Notice).
— Jeremy Hogan (@attorneyjeremy1) March 20, 2023
Traders likely reacted to rumors of the case already being settled on paper, although nothing has been officially confirmed.
The outcome of Ripple’s lawsuit has the potential to significantly impact the broader cryptocurrency industry, which has been seeking regulatory clarity for some time now.
Ripple has argued that the SEC’s lack of clear guidance on securities laws for digital assets has created confusion in the market, making it difficult for participants to comply with regulatory requirements.
In addition to the legal developments, Ripple’s community has been reassured by CEO Brad Garlinghouse, who has stated that the company is in a strong financial position despite its exposure to the collapsed Silicon Valley Bank (SVB).
Technical analysis from TradingView suggests that XRP’s bullish momentum could continue, with a summary of one-day gauges recommending a ‘buy’ sentiment at 15, while moving averages are for a ‘strong buy’ at 14.
However, oscillators remain neutral, standing at 8.
In summary, if XRP manages to maintain its gains above the $0.45 level, it is likely to aim for the $0.50 milestone.