On Monday, the XRP cryptocurrency hit more than two months highs. The surge more than reversed the late-December price drop due to a lawsuit from the San Francisco-based payment protocol developer Ripple Labs, which has close ties to the digital asset.
Ripple LabS rejects SEC allegations
XRP rose to a high of $ 0,6836 during the European trading session, the highest level since November 25. As a result, the cryptocurrency replaced the stablecoin tether (quotation USDT) as the third largest cryptocurrency by market value.
XRP prices dropped from $ 0,55 to $ 0,20 after the US SEC (Securities and Exchange Commission) announced a lawsuit against Ripple Labs on December 22, triggering a series of cryptocurrency revocations by of numerous exchanges.
The SEC accused the company of violating securities laws by raising $ 1,3 billion over seven years from retail investors through its XRP sales. On Friday, Ripple Labs dismissed the SEC's allegations, arguing that XRP's liquidity and functionality with securities regulation are completely incompatible, and its registration as a stock would compromise its core functionality for faster, cheaper global payments. and more transparent.
Who is behind the sudden new growth of XRP?
The cryptocurrency garnered strong support on Saturday, rising 56% and posting its largest single-day gain in three years, and has remained on the offensive ever since. A two-day coordinated work by members of the Telegram group “Buy & Hold XRP” along with an invitation to buy XRP by the r / SatoshiStreetBets community appears to have helped push cryptocurrency to recent highs.
At press time, Telegram's support group had 200.000 members. However, some observers are of the opinion that Telegram traders may not be the only proponents of the price increase.
“On Sunday, XRP's 24-hour volume was over $ 26 billion. Even if each of the members of the social groups had spent $ 5.000 on XRP, that would be equivalent to 2% of the total daily volume. Let's be rational: no Telegram group is pumping the fifth largest currency in space, ”noted Twitter analyst Credible Crypto tweeted Sunday.
“The next price target for XRP is the $ 0,80 threshold which, if breached, would open a rally to $ 1 and beyond,” said Alex Melikhov, CEO and founder of the cryptocurrency framework Equilibrium and stablecoin EOSDT.
Melikhov therefore argues that there are no resistance levels between $ 0,80 and $ 1,00. Strong action above the one dollar mark would shift attention to record highs above $ 3,00 reached in December 2017.
