XRP price skyrocketed to its highest level since March 2022 as investors reacted to the ruling on the lawsuit against Ripple Labs by the US Securities and Exchange Commission. The XRP price jumped more than 73% to an intraday high of $0.9380. The asset’s total market cap has climbed by more than 80% over the last day to $41.25 billion, surpassing BNB as the fourth-largest cryptocurrency. The total volume of XRP traded over the same period has also skyrocketed by 1,724.63%.
What’s Driving XRP?
XRP price jumped to its highest level in more than a year, driving the crypto market sentiment higher. The global crypto market cap has soared by more than 6% over the past 24 hours to $1.25 trillion, with the total crypto market volume increasing by 137%. Crypto heavyweights, Bitcoin and Ethereum, have surpassed their important resistance levels of $31,000 and $2,000, respectively. Altcoins, including Cardano, Solana, Polygon, Avalanche, and Stellar, among many others, have also edged higher.
The main catalyst behind the jump in the XRP price has been the ruling on the SEC vs Ripple lawsuit. Ripple Labs, the cryptocurrency company behind the XRP token, defeated a significant part of the Wall Street regulator’s enforcement case over the sale of the XRP token. Ripple has been battling the lawsuit for more than 3 years, since 2020.
US District Judge Analisa Torres on Thursday agreed with Ripple Lab’s argument that roughly half of its XRP sale of XRP did not violate federal investor-protection laws. The company argued that its XRP token, which is used to facilitate cross-border payments, is not a security. Judge Torres ruled that XRP is a security when only sold to institutional investors. The ruling marks a partial win for the SEC and a clear win for Ripple Labs.
XRP price jumped by more than 70% on the back of the federal ruling and is currently up by more than 130% in the year to date. The decision made on Thursday has buttressed claims by major cryptocurrency exchanges that are fighting similar allegations by the SEC. Earlier in June, the SEC filed a lawsuit against crypto bigwigs, Binance and Coinbase, for alleged securities violation. In the lawsuit, SEC deemed a slew of cryptocurrencies, including Polygon, Cardano, and Solana, as securities.
XRP Price Analysis
The daily chart shows that the XRP price has jumped to its highest level this year amid the federal judge ruling in favor of Ripple Labs. The asset has rocketed above the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. Its Relative Strength Index (RSI) is in the overbought zone at 79.
Therefore, the XRP price is likely to be short-lived. The digital asset is likely to experience a price reversal in the ensuing sessions as traders target the next important level at $0.5850. However, a breach above the resistance level of $0.8575 will invalidate this cautiously bearish thesis.
XRP Price Chart
