XRP Surges Forward: Stellar Day Unfolds as SEC Drops Ripple’s Leadership Charges

XRP Surges Forward: Stellar Day Unfolds as SEC Drops Ripple’s Leadership Charges

Marking a significant turning point, XRP celebrated its highest single-day percentage rise in the past three months on Thursday. This impressive surge came hot on the heels of the U.S. Securities and Exchange Commission (SEC) deciding to drop charges against Ripple’s top brass. Consequently, XRP, recognized as the world’s fifth-most dominant digital asset, soared by 6.5%, momentarily touching the 53 cents mark, and later settling at 51 cents, according to CoinDesk data.

Interestingly, this move by the SEC to dismiss allegations against Ripple’s dynamic duo, CEO Brad Garlinghouse and co-founder Chris Larsen, wasn’t entirely out of the blue. A few months earlier, the Southern District of New York had already paved the way by pronouncing that Ripple’s offer and sale of XRP on digital platforms weren’t synonymous with offers and sales of investment contracts, contrary to the SEC’s earlier allegations.

Zooming out, it’s important to remember that about three years ago, the SEC had firmly pointed fingers at Ripple Labs, closely associated with XRP, accusing them of sidestepping securities regulations and amassing a whopping $1.3 billion through XRP sales. This legal cloud loomed large over XRP, holding it back, even as the larger crypto market surged forward.

Transitioning to the market dynamics, it seems spot market enthusiasts were the primary drivers propelling Thursday’s XRP rally. Such spot-driven ascents are often seen as more enduring than those pushed by leverage traders. Coinalyze’s data fortifies this perspective, highlighting an upswing in the cumulative volume delta (CVD) in spot exchanges, signaling a net market inflow. In contrast, the CVD metrics for stablecoin and coin-margined futures markets stood unchanged. Simply put, a rising CVD translates to more active buyers, whereas a declining trend indicates the opposite.

However, it’s essential to note that while Thursday’s gains were indeed laudable, they just missed the mark in breaking a two-month price stabilization, fluctuating between 49 and 45 cents. Such range plays, epitomizing volatility stasis, often set the stage for a substantial shift in either direction. The inherent market logic is that during such consolidation phases, the market accumulates energy, later released in the direction of the eventual breakout.