XRP, the sixth-largest cryptocurrency by market cap, has seen a surge of 12% in its price over the past week, outperforming Bitcoin and other major coins. The rally comes amid a wave of optimism among XRP supporters, who are anticipating a favorable outcome in the ongoing legal battle between Ripple, the company behind XRP, and the U.S. Securities and Exchange Commission (SEC).
🗣️ #XRPNetwork is the top trending asset in #crypto as prices have jumped +22% the past 19 days. We are also seeing historically high address activity surges for the 6th ranked market cap asset. Expect $XRP's price to behave uniquely for the time being. https://t.co/xfW9vOGXcC pic.twitter.com/WYNbPkkJFd
— Santiment (@santimentfeed) May 31, 2023
Ripple Continues to Grow Despite SEC Lawsuit
The SEC sued Ripple in December 2020, accusing it of selling $1.3 billion worth of unregistered securities through its XRP token sales. Ripple claims that the accusations are false and that XRP is a digital asset that enables faster and cheaper international payments, not a security. The case has been closely watched by the crypto community, as it could have significant implications for the future of Ripple and other similar tokens.
In a recent interview, Ripple CEO Brad Garlinghouse expressed confidence that the case will be resolved in “weeks not months”, and hinted at a possible settlement with the SEC. He also said that Ripple has been making progress in expanding its global network of partners and customers, despite the legal uncertainty.
Ripple’s social media buzz has also increased significantly in the past week, according to data from Santiment, an on-chain analytics firm. The social volume metric, which measures the number of unique mentions of XRP on platforms like Twitter, Reddit, and Telegram, has reached its highest level since April 2021, when XRP hit its all-time high of $1.96.
However, some analysts warn that the spike in social volume could also indicate a top signal for XRP, as it reflects extreme crowd sentiment that often precedes a price correction. Ripple is currently trading at around $0.50, facing resistance at the $1 level. It remains to be seen whether XRP can sustain its momentum and break above this psychological barrier, or succumb to profit-taking and bearish pressure.