Ripple [XRP] Gains 20% As The Countdown To The SEC Decision Begins
- Ripple’s [XRP] market value surpassed $20 billion for the first time since the FTX collapse.
- XRP reacted to the possibility of a litigation resolution date. The network expansion and velocity of the cryptocurrency have dropped.
According to CoinMarketCap statistics, Ripple’s [XRP] market value surpassed $20 billion for the first time since the FTX epidemic hit the market more than two months ago.
At press time, XRP was trading at $0.4096, up 20% from the beginning of 2023.
This followed the global crypto market value recovering the $1 trillion level, indicating a reversal of FTX-induced losses.
In a recent conversation, Ripple Labs CEO Brad Garlinghouse expressed hope that the two-year-long Ripple versus SEC litigation will be settled in the first half of 2023. He indicated that, given the legislation and the circumstances on the ground, Ripple felt positive about its chances.
Interestingly, after Garlinghouse’s assertion on the settlement resolution date, XRP broke through the crucial resistance level of $0.39. The price was facing resistance around $0.4093 at the time of writing. This level has previously hindered XRP’s climb, so bulls will be trying to break through it to support the concept of an FTX turnaround.
Bulls were still in charge, according to the Relative Strength Index (RSI) and Awesome Oscillator (AO). However, the On Balance Volume (OBV) encountered opposition. A break above the suggested level might result in another XRP rise.
However, if on-chain data was to be trusted, all was not fine. According to Santiment statistics, network growth continued to decline, indicating that user adoption was still lacking. Even the velocity indicator, which spiked on the news of the lawsuit settlement on January 18, has plummeted precipitously since then.
Investor confidence remained low as weighted sentiment remained negative over the preceding week.
The outcome of the SEC’s action against Ripple regarding the status of XRP might have substantial ramifications for the US cryptocurrency industry. The regulations regulating the classification of cryptocurrencies as commodities or securities remain murky.
Previously, in response to another Twitter user’s assertion, Ripple CTO David Schwartz recently outlined why XRP should be viewed as a commodity.
XRP is a raw good that trades in commerce and one XRP is treated as equivalent to every other XRP. That’s pretty much the definition of a “commodity”. No part of XRP’s value comes from anyone else’s legal obligations to XRP holders.
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