XRP Surges Towards $0.50: Ripple’s Battle with SEC Fuels Optimism

key Points:

• XRP met some resistance near the $0.50 level 
• It has not traded at this price since November 2022
• XRP continues to trade independently of bitcoin 

XRP has been bucking the downward trend in the cryptocurrency markets, today’s meandering between positive and negative ground notwithstanding. In the past week, XRP has climbed approximately 25% higher, inching closer to the $0.50 level for a market cap of $25.8 billion. 

XRP has been trading independently of bitcoin lately, with the leading crypto having shaved 4% off its market value in the last seven days. 

XRP has not traded at the $0.50 level since November. Investors are optimistic that Ripple will prevail in its fight with the U.S. SEC sooner than later and are piling into XRP to catch the upside potential. 

Traders caution longs that XRP could be a bit overextended here. However, if it manages to surpass the $0.51 level, it could easily reclaim the $0.65 threshold. Otherwise, if it fails at $0.51, it could be stuck in that range for a while. 

Cross-Chain Bridge 

In the meantime, Ripple devs continue to work on the cross-border payments network. Most recently, they’ve proposed a cross-chain bridge to strengthen its use case. It would allow the XRP Ledger to operate with other blockchains.   

Hostile Environment for Crypto 

While Ripple’s SEC case is likely winding down, U.S. regulators are seemingly just getting started with their crypto crackdown. They have created what crypto leaders have described as a hostile environment in which crypto companies operate.  

Most recently, the CFTC has come out swinging against cryptocurrency exchange Binance, taking CEO Changpeng (CZ) Zhao, who says he’s been working alongside regulators for years, by surprise. 

The CFTC has sued Binance, alleging that it evaded compliance rules in an attempt to win over U.S. investors. CZ has responded to the complaint, saying he disagrees with the “characterization of many of the issues alleged in the complaint.” Meanwhile, U.S. crypto exchange Coinbase is being targeted by the U.S. SEC for allegedly breaking securities laws. 

The regulatory crackdown triggered a sell-off in leading cryptocurrencies, including bitcoin and Ethereum, while the XRP price has remained unscathed from this pressure.