A sharp rise in the XRP price against Bitcoin (BTC) has been attributed to optimism about a potential settlement between Ripple, a blockchain payment company based in San Francisco, and the US Securities and Exchange Commission (SEC).
The Reason Behind XRP Price Boom
The XRP/BTC pair reached 0.00002877 on Sept. 23, its highest level in 13 months from 0.00002132, a 35% increase against Bitcoin in a single day. XRP rose 42% against the dollar during the same period.
Prices for XRP began rocketing after Ripple and SEC filed motions for summary judgment on September 12 regarding allegations that Ripple committed securities fraud.
Therefore, Ripple and SEC agreed to allow the court to use the available evidence to decide whether Ripple illegally raised funds by selling XRP by December 2022, so a trial would not be needed.
A possible win for Ripple has fueled XRP’s price boom of approximately 75% and 60%, respectively, since Ripple’s court filing.
Buying of Ripples accelerated after Ripple CEO Brad Garlinghouse suggested the same in his September 22 interview with Fox Business.
“People realize that the SEC is really overreaching and they are not following a faithful allegiance to the law in pursuit for an outcome […] The SEC has kind of lost its way,” said Garlinghouse.
Another XRP Price Surge
In addition, XRP price surged after since May the rich investor has been consistently accumulating XRP tokens.
Sharks and whales or also known as the percentage of entities holding between 1 million and 10 million XRP tokens has increased as a whole to 6.35% on Sept. 23, 2022. It went up from 5.43% on Dec. 31, 2020.
“Active shark & whale addresses holding 1m to 10m $XRP have been in an accumulation pattern since late 2020,” cited from Santiment, a platform focuses on providing financial market data related to crypto asset.