Bitcoin Struggles, but Why is XRP Price Surging?

Bitcoin Struggles, but Why is XRP Price Surging?

Key Insights

  • Bitcoin price is consolidating around $30,000 while XRP has surged by 6% in the last 24 hours.
  • XRP gained 68.5% in the last 7 days.
  • The coin's on-chain data shows a strong interest and demand.
  • Ripple won the case against SEC regarding the "programmatic" XRP sales, but not the "illegal institutional sales".
  • Ripple and SEC have been ordered to schedule a settlement conference.

Ripple has exploded by over 6% in price in the last day alone, according to data from CoinMarketCap.

Bitcoin, the flagship cryptocurrency continues to dart up and down around the $30,000 zone after losing its footing above $31,000 this week.

The crypto market appears stable for now, with cryptocurrencies like Bitcoin (0.5%), Ether (0.81%), BNB (0.57%), Solana (4.8%) and Dogecoin (1.21%) managing to stay green on the daily timeframes.

The Crypto Market Overview
The Crypto Market Overview

XRP on the other hand, is up by a nice 6% over the last 24 hours, and by 68.5% over the last seven days.

XRP Leading The Race

Ripple's coin has gained 6 – 6.9% in its single rise over the last 24 hours, indicating that it is breaking out of the current consolidation period due to increased interest.

Following a very profitable trading session on July 13th when XRP nearly doubled in price after Ripple (partially) beat the SEC in court, Ripple declined sharply afterwards.

XRP's initial decline
XRP's initial decline

This resulted in an 11.95% loss on July 14, erasing some of the gains made the day before.

Right after this, Ripple consolidated for three days near the lower half of the $0.70 range before gaining momentum. And on July 18, the cryptocurrency increased by about 5.6%, reaching $0.77.

The bulls took advantage of this, and have pushed the price of the cryptocurrency throughout Tuesday and Wednesday, allowing Ripple to briefly regain $0.81.

XRP's Price Recovery
XRP's Price Recovery

As it turns out, the bears appear to be gaining footing and are pushing Ripple down. XRP is now trading at about $0.7954 with a total gain of about 7.52% today alone.

Despite the short pause and decline, on-chain data shows that the interest and demand for XRp is strong.

XRP's daily volumes | Source: <a href='https://app.santiment.net/charts?settings=%7B%22slug%22%3A%22xrp%22%2C%22ticker%22%3A%22XRP%22%2C%22from%22%3A%222023-01-19T22%3A59%3A59.929Z%22%2C%22to%22%3A%222023-07-19T22%3A59%3A59.929Z%22%7D&widgets=%5B%7B%22widget%22%3A%22ChartWidget%22%2C%22wm%22%3A' target='_blank' rel='noreferrer noopener'>Santiment</a>
XRP's daily volumes | Source: Santiment

For example, data from Santiment shows a massive spike in Ripple's volumes over the last week until date, as well as a huge spike in network activity over the last quarter.

XRP's spike In Network Activity
XRP's spike In Network Activity

XRP Versus The SEC So Far

In some ways, Ripple won the fight against the SEC, as almost everyone already knows by now.

When Judge Analisa Torres declared that XRP did not fulfil the requirements for being designated a security, XRP got catapulted into a one-year high of $0.938.

The cryptocurrency's success even got it re-listed for trading on crypto exchanges like Coinbase and Kraken.

Things are going well for Ripple, aren't they?

Well, not quite.

Recall that Judge Torres ruled in her decision that Ripple's "programmatic" XRP sales, as well as sales to Larsen and Garlinghouse, did not constitute an unregistered securities offering.

She did, however, deny Ripple's appeal for summary judgment on the alleged "illegal institutional sales" of XRP.

To put things simply, this means that when XRP was offered to the general public or individual investors, the cryptocurrency was not considered a security.

However, when it was offered to institutional investors, it qualified as a security. This means that the SEC had some solid ground to stand on, and still have a solid hand around Ripple's throat.

The implication of this is that Ripple is still liable to pay $729 million in fines and penalties.

Settlement Conference Incoming For Both Parties

In recent news, XRp's latest surge may have been due to some new developments in the ongoing dispute between Ripple and the SEC.

It so happens right after Judge Analisa Torres gave her final verdict on the Ripple versus SEC dispute a few days ago, she referred the case to district magistrate judge Sarah Netburn for general pretrial processes.

According to records released in a tweet from Fox journalist Elanor Terrett, Judge Netburn has ordered both Ripple and the SEC to agree on three mutually convenient dates to schedule a settlement conference, "if they believe it to be productive at this time."

Judge Netburn has also recommended that both parties schedule six to eight weeks beforehand, due to the court's busy schedule.

Magistrate Netburn will hear pretrial petitions and discovery conflicts, as well as preside over settlement conferences and make final judgment recommendations to the judge.

Overall, the final outcome of the final verdict will determine whether Ripple enters a ~ $1 billion debt, or if it enjoys absolute and unchallenged victory in its prolonged fight against the SEC.

Overall, Ripple, according to a recent announcement tweet, has recently made investments in artificial intelligence and the metaverse in order to strengthen its ecosystem and increase investor confidence.

It also took part in a $54 million fundraising round for Futureverse, a metaverse initiative that would leverage the XRP Ledger for payments.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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