Ripple’s cryptocurrency XRP has been on the rise throughout the past week. It is at $0.91 with a 44.4% rise since the end of March. XRP came back with a blast and made it back in the top 4 by market cap. It is quite impressive, considering the lawsuit with SEC is not even over yet.
What’s pushing XRP?
In December 2020, SEC filed a lawsuit against Ripple, claiming that they sold illegal securities in the form of their pre-mined XRP tokens. If Ripple labs actually did control XRP’s supply and distribution in the early days, that puts them in a tight spot and leaves XRP price in the crosshairs. So how come the XRP price managed to rocket in under a week?
Another tendency that has been in the center of attention throughout the beginning of April is the so-called “altcoin season.” It refers to the rising demand and value of crypto-coins alternative to bitcoin, hence the name. Part of the reason for altseason coming about is stabilizing the bitcoin price after a bullish rally. Altseason has benefited all cryptocurrencies, including ETH ($2,062) and litecoin ($230), with a significant rise.
As far as the lawsuit goes, it has become a market indicator of sorts for the investors. Every minor step forward in Ripple’s favor is reflected in the price, and there are a few examples already. When the SEC retracted its market manipulation claims against Ripple in Feb 2020, the price went up 15% right after.
Ripple labs had another step forward when SEC agreed to redact the company’s private emails. And again, that small victory in the courtroom reflected positively on the XRP value. It hit the $1.00 benchmark on Tuesday.
What to expect?
Ripple lab has claimed that it will continue to do well even if they lose in court, but is that really so? XRP value is highly dependent on the lawsuit and seems to fluctuate according to the court proceedings. Investors who put their trust in XRP are watching those proceedings closely and expecting Ripple to recover quickly. So when the altseason is on the low again, hopefully, the company will have the strength to smooth their feathers.