Ripple’s XRP has experienced a sudden spike in its value following the win against the US Securities and Exchange Commission on whether the token should be classified as a security. Charges on Ripple executives were also dropped, and this recorded an increase in the XRP market price to a level higher than its gain in recent months.
The dropped charges brought a sense of relief to the crypto community. It brought some much-needed clarity to the crypto community, judging by the weight the case has brought the Ripple company since 2020.
The SEC’s decision includes dropping charges against Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larsen. The SEC takes up the pivotal role of weighing in on the regulatory frameworks that might boost the status of the crypto community.
The SEC dropped charges against Ripple Execs
The ruling on Thursday by the Securities and Exchange Commission (SEC) has caused a positive movement of XRP’s price upwards. SEC dropped the charges on Ripple’s case that implicated its executive officials, and XRP experienced a 6.5% rise in its market value.
The SEC accused Ripple of raising XRP sales totaling $1.3 billion to its investors. This kept XRP under pressure, and the public faced a challenging phase as its investors lost confidence in the digital asset. However, things seem to be turning around for the cryptocurrency.
The court filing on Thursday reported that SEC demising allegations brought on Ripple have lasted over 3 years since its appeal. The Southern District of New York stated that Ripple offered and sold XRP on the digital exchange but did not amount to the sale offers of investment contracts.
XRP is the fifth largest digital asset in the digital space, with a current price tag of $0.51. It happened after hitting the $0.53 mark right after the announcement of the dropped charges. This data implies that its future trajectory is set on an upward movement indicating a general rise in its price.
The gains experienced in the bull run on Thursday topped their 3-month gain total. Additionally, the spike ended a two-month consolidation period between $0.45 to $0.49.
How the case drop affects XRP’s market
The range play normally welcomes a bigger move in either direction. A consolidation period implies that the market is gathering orders to build a strong trend, and in this case, it might be an uptrend based on recent analysis. This happens when the range is breached in this new market direction, unleashing a strong trend.
Moreover, the XRP bull rally on Thursday recorded the largest one-day gain in the crypto market in under three months. Coupled with the dropped charges and the bull rally, XRP has renewed its confidence among investors and brought relief to cautious crypto investors.
Investors who are skeptical about XRP’s legal battle may view the digital currency as an attractive investment. This might even prompt the exchanges that delisted XRP to relist the asset. This might positively affect its accessibility and boost its liquidity.
The regulatory clarity has long been a catalyst for price appreciation, and this is to be witnessed in XRP cryptocurrency.
The spot market buyers were responsible for the Thursday XRP bull rally. The spot rallies driving the market value increase are noted to be more substantial than those driven by leverage traders.
According to data analysis from Coinalze, the cumulative volume data (CVD) for the spot exchanges increased parallel to the XRP price spike. This indicates a sudden net inflow into the crypto market. It’s considered a very positive development, considering other stablecoins had flat market rallies.
