XRP, the digital asset linked to Ripple Labs in the past 24 hours period has recorded a surge in trading volume, boosted by rumors of likely settlement with the United States Securities and Exchange Commission (SEC). CoinMarketCap data indicates that trading volume soared by over 19% to $2,077,832,567 despite a dip in price.Â
Impact of a Potential SEC – Ripple Settlement
This significant performance contrasts with the general downturn in the digital cryptocurrency where the combined market has recorded liquidation totaling $300 million following Bitcoin’s decline by approximately 3%.
However, for XRP, the $2,077,832,567 in trading volume shows that the asset is experiencing positive market sentiment. Additionally, it signals the possibility of growth in the XRP ecosystem.
Market observers say the upsurge in XRP followed rumors of a meeting between Ripple and the markets regulator. Although previous meetings between the duo had not yielded positive results and a resolution to the ongoing legal battle, recent indications point to a likely resolution soon.
If the payment company and regulatory body reaches a resolution, analysts believe it will do XRP a whole lot of good and boost its key metrics for the digital asset. However, a settlement implies that Ripple will part with a lump sum for selling XRP to institutional investors.
XRP Technical Analysis Points to Potential Price Spike
Notably, shedding the weight of the lingering legal battle may be critical to a shift in price value of XRP. A critical review of the asset shows that for the past three years since the U.S. SEC instituted the lawsuit, XRP has stagnated in price.
Since December 2021, XRP has not climbed above $1. Despite a favorable ruling from Judge Analisa Torres last year that XRP is not an investment contract, prices have continued to fluctuate below the $1 level.
Meanwhile, a recent analysis of XRP reveals the Bollinger Bands tightening currently hints at 60,000% potential surge. When this indicator was first recorded on chain, XRP skyrocketed by 55,000%. At the time, XRP recorded a price jump to $3.30 by early 2018.
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