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XRP, Ripple XRPLedger’s native token, saw a substantial overnight run attempting to hit its bullish target of $0.50 but ultimately fell short, reaching a high of $0.49.
XRP broke away from the general crypto market, recording massive gains and reaching its highest levels since November 2022. XRP, the native token of cross-border payment settlement firm Ripple’s XRPLedger, witnessed an incredible surge on Tuesday, breaking into a solo rally which yielded overnight gains of over 20%.
XRP Rides the Wave of Fed Hikes and Banking Failures
In response to the voluntary liquidation of Silvergate Bank and Silicon Valley Bank’s (SVB) collapse, crypto investors have become bullish on Bitcoin and altcoins. As one of the most prominent altcoins by market cap, XRP’s price surged on the back of the recent U.S. banking crisis and the anticipation of an interest rate hike by the U.S. Federal Reserve. The Fed’s consequent decision to inject liquidity into the economy and protect banks from collapse has been the catalyst to drive investors toward decentralization and cryptocurrencies.
XRP is currently trading at $0.44, representing gains of over 20% in the past 24 hours and 16% on the weekly chart.
Bullish Sentiment Surrounding SEC Case
XRP has also responded to recent developments in its case involving the United States Securities and Exchange Commission (SEC). Analysts claim that investors have become more confident in the case’s outcome after a Letter Notice of Supplemental Authority was filed by the defendants in the case.
Attorney James Filian revealed in a tweet on March 20 that the defendants in the case sought to support their fair notice defense by referencing a separate legal case where Judge Michael Wiles of the U.S. Bankruptcy Court for the Southern District of New York rejected the SEC’s argument, ruling that it was too vague.
The SEC objected to Binance.US’s bid to acquire Voyager Digital’s assets which included an asset known as VGX. The agency claimed that Voyager was an unregistered securities exchange and VGX has “aspects of a security”, to which it gave no further explanation.
Judge Wiles stated in his ruling:
I reject the contention that the Court, and the Debtors, somehow were supposed to figure out for themselves just what ‘aspects’ of the VGX token might be considered to be aspects of a ‘security,’ or just what particular activities of Binance.US allegedly could raise registration issues, and then somehow to offer evidence and legal argument on those points.
Ripple has continually asserted that the lack of clear guidance from the SEC regarding securities laws for digital assets has caused great confusion and uncertainty in the market and made it increasingly difficult for participants to understand how to comply with regulations.
A lot hinges on the outcome of the lawsuit, which is expected to have a far-reaching impact on the entire crypto asset industry, which has been stuck in confusion amid the lack of regulatory clarity.
Ripple CEO Brad Garlinghouse has also managed to settle investor’s concerns after it was revealed that Ripple Labs had “some exposure” to SVB. Garlinghouse assured investors that the company “remains in a strong financial position despite its exposure to the failed bank.”
Obviously a lot is still unknown about what happens with SVB, and as is the case with many others, we hope to have more details soon – but rest assured, Ripple remains in a strong financial position.— Brad Garlinghouse (@bgarlinghouse) March 12, 2023
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.