XRP, a digital asset used for online payments and currency swaps, has seen a significant price increase of 7% in the past 24 hours, reaching over 64 cents. This surge in price marks the highest point for XRP since March 25, driven by optimism surrounding a potential settlement in the long-standing legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs.
Traders are hopeful that the recent filing by the SEC, indicating its intention to amend its complaint against crypto exchange Binance, could signal a possible resolution to the SEC’s case against Ripple Labs. While the filing did not specifically mention XRP, traders interpret this as a positive development in the ongoing legal battle.
Ripple Labs, a fintech company focused on developing a global payments network, is set to release 1 billion XRP tokens, equivalent to $641 million, in August as part of a scheduled token unlock. Despite concerns that increasing the token supply could lead to a price drop, research suggests that it could actually bolster the bullish momentum in the market by enhancing liquidity.
Market data reveals that a significant portion of XRP’s demand originates from South Korea, where trading volume for the XRP-Korean Won pair surpasses that of other trading pairs. South Korean traders are known for driving frenzied rallies in the crypto market, potentially influencing price movements and contributing to buying pressure.
In July, trading activity for XRP on local exchanges in South Korea outpaced that of popular cryptocurrencies like bitcoin and tether (USDT) stablecoins, resulting in a 20% increase in XRP’s value. This surge in demand from South Korean traders highlights their impact on market dynamics and price fluctuations.
The positive sentiment surrounding XRP’s price increase reflects growing optimism among traders for a potential resolution to the SEC lawsuit and the scheduled token release by Ripple Labs. As the market continues to monitor developments in the legal dispute and token release, XRP’s price movement remains a key indicator of investor sentiment and market trends.