Altcoin Ripple approached the $2 mark for the first time in three years. What is the reason for this, and what is the probability that the asset will update its historical maximum value
On Wednesday, April 14, the XRP token rate for the first time in three years approached the $2 mark. At its peak, altcoin quotes reached $ 1.96, the coin is traded on Binance at $1.76, over the past day it has risen in price by 4%, since the beginning of the month—by 221%.
The growth of altcoin is due to two factors—the growing cryptocurrency market (today bitcoin has updated its all-time high above $ 64.8 thousand, Ethereum reached $ 2.4 thousand for the first time) and another positive step in the confrontation between Ripple and the US Securities and Exchange Commission (SEC)…
On April 12, Ripple CEO Brad Garlinghouse and blockchain co-founder Chris Larsen filed a motion to dismiss the SEC’s individual liability claim. According to the company’s representatives, the regulator was unable to prove the fact of deliberate violation of the law by its management. The commission must respond by May 14, after which the defendants will have the opportunity to submit a counter-application by June 4.
Crypto-Auditor is sure that some relaxation of tensions in the SEC and Ripple lawsuit acts as a buying catalyst for speculative investors who are pushing the price of the XRP token up.
The current explosive growth in XRP quotes is also associated with the popularity of the coin among traders and undervaluation during the time the asset was under pressure due to the situation with the SEC. Also, the likelihood of a rise in the rate of the coin to the level of $ 3 and renewal of the historical maximum of $ 3.7 during the current season of altcoins can be called extremely high. The expert recalled that, for example, Ethereum has already updated the maximum mark several times.
XRP remains the most risky asset among the top 10 cryptocurrencies by capitalization due to its vulnerability to the actions of the US judicial system. Further growth of the asset above the current historical high will determine its legal status and distribution according to the Ripple roadmap.
If altcoins continue to rally strong, XRP will also rally in value. Experts call the Ripple coin very manipulative, and the movements of its quotes are unpredictable. According to Podolyan, the price of the asset is primarily controlled by the company’s leaders.
XRP has already been manipulated this year. A chat “Buy and hold XRP on February 1” appeared in the Telegram messenger. It had about 200 thousand participants, and in a group of similar topics—more than 90 thousand subscribers. On February 1, the altcoin price for the first time since November 2020 reached $0.75, but at the appointed time, the altcoin price, on the contrary, began to decline sharply. During the day, the drop exceeded 47%, against the background of this, there were massive liquidations of the margin positions of traders—they suffered losses of $508 million.