Ripple (XRP) is currently outperforming the rest of the market, which is either consolidating or trading in a choppy manner. The cryptocurrency is defying expectations and trending upwards with no signs of slowing down.
Below are some reasons that may explain why this is happening and whether this upward trend will continue.
Ripple’s Favorable Case Against SEC
One of the primary reasons for the surge in XRP’s price is that investors seem to be betting on Ripple winning the case against the US Securities and Exchange Commission (SEC).
The SEC filed a lawsuit alleging that Ripple conducted an unregistered sale of securities and claimed that XRP is a security. However, Judge Analisa Torres denied the SEC’s request to seal documents related to a speech by Bill Hinman, the former director of the SEC’s corporate finance division. The denial of this request for the third time suggests that it may be important for the SEC to keep the records hidden.
Ripple hopes to use this information to influence XRP’s classification by finding out more about how Hinman determined that Ethereum was not a security at the time.
Judge Torres ruled that these documents should be accessible based on the principle of public access to judicial documents.
Finalization of $250M Metaco Deal
Another positive development for Ripple and XRP is that the company has acquired Metaco, a Swiss cryptocurrency custody provider, for $250 million. This move aims to expand Ripple’s position in the crypto world and toward crypto custody.
Ripple CEO Brad Garlinghouse welcomed the deal, stating that it’s a significant step towards their goal of being critical to crypto infrastructure.
While these developments may explain the recent surge in XRP’s price, it’s uncertain whether it will continue. However, if Ripple’s case against the SEC continues to show positive signs, it may have a positive impact on the price as crypto is driven by news and updates.