Ripple’s XRP experienced a significant surge in price over a 24-hour period on Saturday. This rally was driven by sentimentality surrounding a key decision in the cryptocurrency space.
The surge in XRP price on July 13 coincided with the first anniversary of Ripple’s victory against the Securities and Exchange Commission (SEC). In 2023, the courts ruled in favor of Ripple, determining that XRP is not a security. This ruling brought an end to a lawsuit that began in December 2020 when the SEC targeted the company. Following the victory, top cryptocurrency exchanges like Coinbase and Kraken relisted XRP.
While XRP holders celebrated the anniversary by increasing buying pressure on the asset, it is important to note that the demand for XRP among investors, especially institutional investors, remains relatively low. According to a CoinShares report, institutional investors have shown more interest in tokens like Solana, Litecoin, and Polkadot, with higher inflows compared to XRP.
Despite the positive price movement, the future of XRP remains uncertain. The altcoin saw a 20% increase reaching an intra-day high of $0.566 before cooling down to a 12% rise and stabilizing around $0.534. XRP’s price being above the 23.6% Fibonacci Retracement level is seen as a positive sign, indicating potential support for further recovery. However, if profit-taking occurs, a drawdown could be possible, leading to consolidation below $0.51.
It is important to note that the information provided in this article is for informational purposes only and should not be considered financial advice. Market conditions are subject to change, so it is recommended to conduct thorough research and seek professional advice before making any financial decisions.