The cryptocurrency market witnessed a distinctive surge in Ripple’s XRP prices recently, as the token saw a 7.4% increase over the last 24 hours.
This bullish movement in XRP prices comes amidst the release of documents related to William Hinman,who was the director of the U.S. Securities and Exchange Commission (SEC)’s Division of Corporation Finance from 2017 to 2020.
The documents were made public in connection with the ongoing lawsuit between the SEC and Ripple Labs.
The documents released include a 2018 speech by Hinman in which he suggested that Bitcoin (BTC) and Ether (ETH) were not securities, in his view. This view was expressed by Hinman in the form of a statement:
“We do not need to see a need to regulate Ether, as it is currently offered, as a security”.
Ripple Labs is arguing that based on Hinman’s stance, XRP should also not be regarded as a security. This could potentially result in a favorable outcome for the company in its lawsuit with the SEC.
The lawsuit in question was filed by the SEC in 2020, alleging that Ripple sold unregistered securities. Ripple has traditionally maintained a distance from XRP, which powers some of its products and the XRP Ledger network, but any progress in the case has a significant impact on XRP prices.
However, the road to this price jump was not smooth. The cryptocurrency has oscillated within a broad range between $0.56 and $0.30 for several months.
While traders have typically purchased at the support and sold close to the overhead resistance, the recent price increase indicates a positive change in sentiment, with traders buying on dips.
Contrary to the current bullish scenario, technical indicators from previous days suggested a strong sell sentiment for XRP, highlighting the unpredictability of the crypto market.
The recent jump in XRP prices adds a fresh layer of complexity to the ongoing debate about the status of the digital token.
While the lawsuit’s outcome remains uncertain, the release of Hinman’s speech has fueled bullish sentiments among traders, who are betting on a possible favorable outcome for Ripple Labs.