Ripple (XRP) Soars to a new 2021 High; Lawyers Take on the SEC
Over the weekend, the Ripple price rallied to a new 2021 high, clearing several hurdles to $0.56, doubling in the process. Interestingly, for traders, the upswing is with high participation. Average daily trading volumes are up 11 percent on the last day. This suggests confidence from traders and the wider investment community. The upsurge follows Ripple's recent investment in MoneyTap. However, it could be more due to their lawyers taking on the US SEC. Their preliminary legal response to the SEC's complaint may explain the price spike.
The XRP price is back to third in the market leaderboard with a market capitalization of over $24 billion. Amid confidence that Ripple may win, or at least settle with the SEC, traders are upbeat and could explain the weekend's pump. The coin is up 106 versus the greenback and a ballpark 111 percent against ETH. At the heart of their latest response is their demand for documents and communication that eventually led to the SEC determining that ETH be is a utility, not a security, despite their crowdfunding, raising $18 million. The Ethereum Foundation held pre-mined coins to support project development. It is the same approach taken by Ripple Labs and Ripple. The issuer didn't crowdfund. Instead, Ripple took control of most XRP to support the platform as it seeks to disrupt banking. Eventually, if the SEC responds, clearly showing why ETH is a utility, not a security, the XRP price may find more tailwinds and surge to new highs.
Impact on the XRP Price:
Bullish. Ripple and ODL's success are anchored on regulatory clarity. A clear elucidation will mean banks can adopt ODL and use XRP for cross-border fund transfer, a net positive for the coin under pressure.
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