XRP on-chain activity fuels hope for price rally as SEC vs. Ripple verdict looms
- XRP network activity surged over the past week, a sign of a recovery in the altcoin.
- If history repeats itself, XRP price could jump between 10 and 40%, based on past evidence.
- Ripple’s chief legal officer sees benefits from the SEC lawsuit and remains optimistic over a win against the SEC.
XRP has registered a surge in on-chain activity over the past week, according to data from crypto intelligence tracker Santiment. Typically, a spike in transactions have acted as a precursor of a price rally in the altcoin. This was observed on three occasions recently, making it more likely that XRP price breaks into a rally soon.
Also read: Pro Ripple attorney shows new evidence to support Ripple case against SEC
XRP on-chain activity increases
Daily active addresses in XRP increased nearly seven times, from 17,554 addresses to 142.38K over the past week, according to data from crypto intelligence tracker Santiment. This year, similar spikes were followed by rallies in the altcoin’s price, ranging from 10% to 40% gains within two to four weeks after the rise in network activity.
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Daily active addresses (XRP)
If history repeats itself, XRP price could register a bullish breakout in the short term. As seen in the chart above, XRP daily addresses climbed on March 19, between May 27 and May 29, and from June 23.
Other on-chain metrics paint a bullish picture
XRP’s transaction count increased, as did transaction volume, over the past week. These are other bullish on-chain indicators that support the thesis of a price rally.
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Transaction count and volume in XRP
As seen in the chart above, spikes in transaction count have acted as a precursor to price rallies, similar to an increase in daily active addresses. These catalysts are expected to drive XRP price higher in the short term.
SEC vs. Ripple lawsuit update
Pro XRP attorney John Deaton addressed the speculation that the SEC vs. Ripple lawsuit was staged, in a recent broadcast. Deaton said on his YouTube channel CryptoLawTV, that there is no “secret plot,” the lawsuit is not staged and he alongside 76,000 XRP holders are actively involved in the lawsuit.
While XRP holders await a ruling from Judge Analisa Torres of the US District Court for the Southern District of New York, rumors have surfaced on Twitter and social media platforms. Crypto influencers and community members are speculating the reasons for delay in judgement and have been questioning the authenticity of the SEC vs. Ripple lawsuit.
John Deaton tackled the concern, as a former prosecutor and a pro XRP attorney, in his broadcast. Check it out here:
For XRP price targets, check this post.
SEC vs Ripple lawsuit FAQs
Why are the US Securities and Exchange Commission and Ripple litigating?
The United States Securities and Exchange Commission (SEC) brought charges against Ripple and its executives alleging that the cross-border payment settlement firm raised more than $1.3 billion through an unregistered asset offering of the XRP token. Ripple argues that XRP should not be treated as a security or an investment contract, just like the SEC looks at Bitcoin or Ethereum, citing views from former SEC Director of Corporation Finance William Hinman.
When did the SEC vs. Ripple court case start?
The SEC charges were made public in December 2020. The long-running litigation, presided by Judge Analisa Torres, seems to be close to its end as both parties fail to reach an agreement.
What are the effects on XRP price?
Ripple is the largest holder of the altcoin XRP. The SEC’s charges against Ripple resulted in a mass delisting of XRP across crypto exchange platforms and a sharp decline in the token’s value, which used to be the third crypto asset by market capitalization after Bitcoin and Ethereum. A positive outcome for Ripple in its case against the SEC would benefit XRP’s price, while a SEC win is likely to weigh further on the asset, experts say.
Which implications could the ruling have on the overall crypto industry?
The final verdict in the SEC vs. Ripple lawsuit is the most highly anticipated in the crypto ecosystem. The lawsuit is expected to set precedent for other open cases that affect dozens of digital assets. A ruling in favor of the SEC would most likely bring further regulation to the sector as it would classify most tokens as securities. On the contrary, Ripple’s win would be interpreted as a validation of the crypto markets and could boost investors' confidence if current legal uncertainties surrounding digital assets in the US are solved.
What about secondary sales of XRP among traders?
The ruling may also include views over XRP secondary sales, which directly affects investors who trade XRP on cryptocurrency exchange platforms. Pro-Ripple attorney John Deaton, who filed an amicus brief in the SEC vs. Ripple case, suggests this matter is likely to be addressed. A ruling stating that secondary sales don't qualify as securities, contrary to what the SEC claims, is likely to be beneficial for XRP.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
