After the SEC started a lawsuit against Ripple Labs, and two of its founders, the largest players in the US, stopped offering XRP to their customers for trading, a lot of uncertainty has shaken the market and as a result XRP dropped sharply in value. But only recently the tides have turned and XRP has returned to the market printing new yearly highs.
Many thought that XRP is long dead, but why is one of the oldest and most successful crypto assets climbing its way back to the top?
Ripple is doing well in court
The SEC lawsuit is the main reason why XRP dropped in the first place. In January 2021 the price was at a low point of 17 Cents and most analysts believed that the SEC brought a case before court that is impossible to win for Ripple. Many market participants anticipated that the court would rule that XRP is indeed an unregistered security.
But the court did no such thing yet and in the meantime every hearing and every letter is closely monitored and commented on by news media and independent law firms who use the public attention of the case as a marketing opportunity for themselves. And what the experts have to say so far is more than positive for Ripple.
It is important to understand that the court could decide against Ripple and XRP, but what has changed is the narrative about the possible outcome of the lawsuit. Now everybody is anticipating that Ripple will walk off with a slap on the wrist and continue with developing business and banking solutions on top of the XRP ledger.
#RelistXRP is doing its job
Under the impression that the lawsuit could be won the XRP community went all out on social media and mostly on twitter. Using the hashtag RelistXRP the community simply proclaimed that all US exchanges could start offering XRP again and that there is nothing to be afraid off.
In conclusion the XRP price gained momentum and strength again. It seems that the perception of the legal battle was even more important to price than its actual outcome. XRP could try to tackle its 2018 all-time high as soon as a positive outcome is confirmed. But there are still a lot of possible downsides. Should the court rule against Ripple and XRP, it is absolutely possible that the market will see new lows.