What are the reasons for the increase in the price of the digital currency Ripple XRP by more than 40% in the last 24 hours?
The second half of this January witnessed very unexpected and accelerating events in the crypto market.
The crypto market has been known to fluctuate for a long time, to increase volatility with the return of the activity of the pumping and emptying groups that contributed greatly to the rise of the digital currency "Dogecoin", which rose at high rates before returning to calm and to its normal position and size.
Bitcoin was also affected, and rose by more than $ 4,000 after "Elon Musk" posted the word Bitcoin on his personal Twitter account.
Currently, according to the talk in the groups "Telegram" and "Reddit", the role on the digital currency XRP has been suffering since the US Securities and Exchange Commission announced a lawsuit against it on December 21, 2020, the content of this lawsuit is that Ripple sold XRP as unregistered securities. .
Amidst the legal wrangling, many trading platforms have written off the cryptocurrency XRP.
To make matters worse, the market value of the ripple currency fell by 63%, in a collapse that proved devastating for many investors and traders of the currency.
The first signs of hope appeared when the price of the digital currency Ripple XRP rebounded by 30% seven days after entering the new year, after which the currency returned to its inactivity and slow decline.
In the past 24 hours, the price of the digital currency XRP reached its highest level at $ 0.51 before the currency fell to $ 0.39 after forty minutes, and then stabilized at $ 0.41 at the time of writing this article.
According to Mr. Larry Cermak, director of research at "The Block", he doubts that XRP may have a similar moment for "GameStop" stocks.
And he stated:
XRP could be a victim of a dump.
Whatever happens, the rise in the price of Ripple appeared immediately after Ripple filed a file on Friday to refute the allegations of the Securities and Exchange Commission, which we touched upon in the article:
In Ripple's response to the “SEC,” Ripple indicated that the SEC has overlooked the value of XRP as an aid.
Where Ripple responded in a 93-page deposit, in which Ripple indicated that XRP is open source and that its price may almost follow Bitcoin and Ethereum.
Additionally, Ripple has also submitted a Freedom of Information request from the SEC, asking them how they determined that Bitcoin and Ethereum are not securities.
Mr. Dean Steinbeck, General Counsel and Director of Operations at Horizen Lab, commented to the source about Ripple's response, saying:
The Securities and Exchange Commission is taking this action 8 years after the creation of XRP.
How are companies intended to have regulatory clarity when it takes the SEC 8 years to take action?
Ripple is also referring to Ethereum which is apparently holding illegal securities as Ethereum has previously introduced an ICO.
The Securities and Exchange Commission arbitrarily selects winners and losers.
This is clearly unfair and I think Congress needs to step in here.
And Steinbeck added:
If we learn anything from SEC's past actions, big players like Ripple will come out with a slap on their wrist compared to their unregistered bid size of $ 1.3 billion.
Interested people and holders of the Ripple currency are expected on Monday at 8:30 am EST, as some Telegram groups promise to coordinate a pump towards the Ripple currency to bring it to $ 1, just as these groups tried before with the digital currency "dogecoin".
For our part, we recommend caution with caution.
It is possible that the pump is rapidly emptying and thus the sure loss of arrivals to it, and this is not financial advice, as it may be a very bad idea to invest in the XRP currency at the present time, as the currency is witnessing an unclear legal struggle until the moment.