Ripple XRP, the fifth-largest digital asset in the world, experienced a substantial 6.5% single-day percentage increase, marking its most significant surge since July 13. This remarkable jump followed the U.S. Securities and Exchange Commission (SEC) dropping securities-violations charges against Ripple’s top executives, providing a boost to XRP’s value.
SEC Drops Charges Against Ripple Leadership
The SEC agreed to dismiss allegations against Ripple’s Chief Executive, Brad Garlinghouse, and co-founder Chris Larsen. The move came after the Southern District of New York previously ruled that Ripple’s offer and sale of XRP on digital asset exchanges did not constitute offers and sales of investment contracts, as initially claimed by the SEC.
As a result of this positive legal development, XRP’s price saw a notable 6.5% increase, reaching 52 cents, with a brief peak at 53 cents before settling at 51 cents at the time of reporting, as indicated by CoinDesk data. The market reaction to the SEC’s decision was swift and substantial.
Spot Market Influence
Buyers from the spot market played a pivotal role in driving XRP’s rally on Thursday. Spot-driven rallies are considered more sustainable than those led by leverage traders, underlining the impact of organic investor interest.
Cumulative Volume Delta (CVD) Indicators
Coinalyze data reveals that the cumulative volume delta (CVD) in spot exchanges increased alongside XRP’s price surge. This suggests a net inflow into the market, indicating heightened demand. In contrast, CVD in stablecoin and coin-margined futures markets remained relatively stable.
Range Breakout Anticipation
Despite the impressive surge, XRP’s price gain on Thursday did not manage to break the two-month-long consolidation range, which fluctuated between 49 and 45 cents. This range-bound trading often precedes a significant price move in either direction. It’s based on the idea that market energy accumulates during consolidation, eventually being unleashed when the range is breached.
The SEC’s decision to drop charges against Ripple’s leadership had a notable impact on XRP’s value, resulting in a substantial single-day percentage increase. This development signifies a shift in the legal landscape surrounding Ripple and XRP, prompting anticipation of further market movements and potentially ending the range-bound price consolidation witnessed in recent months.
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