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XRP surged 7.5% over the past week.
XRP has continued to record slight gains as the ongoing legal tussle between the U.S. SEC and Ripple approaches its end. According to data from Coingecko, the price of XRP is up 7.5% over the past seven days. It is currently up 4.3% in the past 24 hours.
XRP broke the $0.50 resistance earlier today, rallying to a 24-hour high of $0.503. In the hours leading up to press time, XRP was changing hands around $0.501. The coin still sits as the sixth-largest cryptocurrency, with a market valuation of $25.97 billion.
Possible Reasons Why XRP Is Surging
The slight gains of XRP may surprise many, given that there has been no major update regarding the cryptocurrency in the past few days.
However, XRP’s recent rally may be attributed to the community’s expectations of a favorable ruling in the ongoing SEC v. Ripple legal battle.
For context, the SEC alleged that Ripple, its CEO, and Chairman, sold XRP as unregistered securities.
Interestingly, the case has been fully briefed, and the parties are expecting a summary judgment decision from U.S. District Judge Analisa Torres to come at any time. While there is still no official date on when Judge Torres could be issuing a verdict, Ripple CEO is confident that the ruling will come within weeks.
Although Judge Torres has yet to rule on the case, pro-XRP lawyers, including attorneys John Deaton and Jeremy Hogan, speculate that the summary judgment decision will favor Ripple and XRP holders.
According to these legal experts, the SEC failed to prove the third prong of the Howey test, “with profits to come solely from the efforts of others.”
Furthermore, there is speculation that the SEC might settle with Ripple to prevent it from publicizing the drafts of Hinman’s speech. Recall that several cryptocurrency exchanges, including Coinbase and Kraken, delisted XRP moments after the SEC sued Ripple in December 2020.
If the parties settle or the court rules in favor of the blockchain company, XRP will be listed on U.S.-based exchanges, thus causing the coin’s price to surge.
It remains unclear what is causing the price of XRP to surge at press time. Although there are rumors of a possible settlement between the parties, there is still no official statement regarding the development. Meanwhile, XRP recorded its second and third largest address activity spikes of all time in the past two days.