The surge in value of XRP (Ripple) today is being explained.
XRP, currently up 10.97% as of 3:45 p.m. ET on Wednesday, is soaring higher. The cryptocurrency is gaining traction as a significant event looms – January 15 is the final day for the SEC to decide whether to proceed with its case against Ripple, the company behind XRP.
The SEC's stance on XRP has been a topic of debate. Initially, a court ruled in 2023 that the SEC's allegations of XRP being an "unregistered security" were unfounded. However, the SEC has chosen to appeal this decision. Some speculated that with a change in leadership imported, the SEC might skip the January 15 deadline.
Contrary to expectations, the SEC is indeed pushing forward with its case, but this hasn't dampened XRP's spirit. A recent report hinted at a friendlier approach by the incoming SEC leadership under the Trump administration, particularly with regard to ongoing litigations. While XRP wasn't mentioned explicitly, the fact that the SEC is pursuing its appeal may be briefly.
Moreover, the broader cryptocurrency market is also experiencing a positive shift, fueled by new inflation data. Inflation rates for the period were lower than anticipated, resulting in a boost in investor confidence, particularly when it comes to riskier assets like crypto.
XRP isn't the only cryptocurrency benefiting from this bullish momentum. Ripple's ongoing efforts to improve transaction speed and safety, along with its partnerships with major financial institutions, have added to its appeal. Additionally, the successful launch of Ripple's stablecoin and the anticipated approval of an XRP ETF in 2025 are further driving XRP's price higher.
The psychological support at the $2 level has also played a significant role. This strong psychological support has contributed to the recent surge in XRP's price, providing an additional layer of bullish sentiment.
References:[1] Yahoo Finance[2] Daily Hodl[3] Investopedia[4] CoinDesk[5] FXEmpire
Investors are closely watching the SEC's decision on XRP, as the final day for the SEC to decide whether to proceed with its case against Ripple is approaching. Despite the ongoing legal battle, many see potential in investing in XRP due to its promise in improving transaction speed and safety, as well as its partnerships with major financial institutions and the anticipated approval of an XRP ETF in 2025.
The recent rise in XRP can also be attributed to the positive shift in the broader cryptocurrency market, fueled by lower-than-anticipated inflation rates that have boosted investor confidence in riskier assets like crypto. With this bullish momentum, some investors are looking at XRP as a viable option for their finance portfolio.
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