XRP hits 13-month high versus Bitcoin with 35% daily surge — But is a correction inevitable?
The XRP price rally appears to be driven by a "buy-the-rumor" frenzy in a potential lawsuit win for Ripple versus the SEC.
XRP price posted a sharp rally against Bitcoin (BTC) on continued optimism about a potential settlement between Ripple, a San Francisco-based blockchain payment firm, and the U.S. Securities and Exchange Commission (SEC).
Settlement rumors fuel XRP price boom
On Sep. 23, the XRP/BTC pair surged to 0.00002877 — its best level in 13 months — from 0.00002132, a 35% price rally versus Bitcoin in one day. Meanwhile, the same timeframe saw XRP rising as much as 42% against the U.S. dollar.
XRP/BTC and XRP/USD daily price chart. Source: TradingView
The big price leaps in the XRP market started appearing after Ripple and SEC filed motions for a summary judgment with the court on Sep. 12 regarding their ongoing legal battle over allegations that Ripple committed securities fraud.
In other words, Ripple and SEC agreed that the court should use available evidence to reach a verdict by December 2022 on whether the blockchain firm illegally raised funds by selling XRP, and thus avoiding trial.
XRP's price has boomed approximately 75% and 60% versus Bitcoin and the dollar, respectively, since Ripple's court filing, fueled by optimism of a possible win for Ripple.
The buying accelerated further after Ripple CEO Brad Garlinghouse suggested the same in his recent interview with Fox Business on Sep. 22.