Ripple Labs vs SEC Lawsuit
Ripple has been in the news for over a year now thanks to the raging lawsuit that is taking place between Ripple Labs and the United States Securities & Exchange Commission over whether XRP is a security or not. SEC argued that XRP was a security and thus fell under the purview of SEC and didn’t comply with their rules and regulations while Ripple Labs argued otherwise and claimed no laws had been breached in the ICO. The case revolved around the fact that,
SEC had sued Ripple Labs’ CEO Brad Garlinghouse and Chairman Chris Larsen in December 2020 on the allegation that it had raised over $1.3 billion by selling XRP in unregistered securities transactions.
And of late, things have been picking up in this particular case because there is a possible resolution at hand. About a week and a half ago, on 18 September 2022 – both Ripple Labs and SEC filed motions for a ‘summary judgment’. They said that a judge overseeing the case has enough information to make a ruling without moving the case forward to a trial.
Now it is undeniable that the lawsuit can go either way but the fact that it is nearing its end is also a major positive sign for investors in XRP. Even before the news broke, XRP price has seen a major appreciation in value, take a look at this chart.
Since 16 September, the XRP price has seen a rally of over 50%, and more recently between 22 and 23 September, it rallied about 27%. That is very significant just for a crypto token that has a market capitalization of over $23 billion.
Even from a technical point of view, XRP price action has been very positive. In one fell swoop, it has managed to break out over both the 50 and 200-day moving averages (marked in cyan and respectively. This has happened after nearly three and a half months of sideways movement in XRP price.
Along with positive price movements, XRP has been seeing improvements on the social and on-chain front too. Recent data from LunarCrush shows XRP’s social engagements and mentions has seen a positive uptick as of late. They have even ranked XRP above 3,900 other cryptos on LunarCrush’s Alternative Ratings.
The #XRPHolders community is at its strongest right now.
In the past 72 hours, #XRP has maintained an AlternativeRank™ of 1 out of the top 3,899 coins across the market!
— LunarCrush (@LunarCrush) September 23, 2022
Additional Read: XRP Price Prediction
Why did Ripple XRP Price Rally in September 2022?
Uptick in XRP’s active addresses count
XRP’s other on-chain metrics have also managed to gain some traction recently, one of the most prominent ones being active addresses count. According to data from Messari.io, XRP’s active addresses count has begun to see a sustained recovery across the board. This indicates a positive sentiment of participants on the XRP chain.
Transaction Count also sees a recovery
XRP’s transaction count has also managed to stage a small but significant recovery on the charts, according to data from Messari.io. This recent XRP price rally coincides perfectly with the recovery in the on-chain transaction count of the crypto and bodes well for the near future too.
XRP’s Sharpe Ratio turns strongly positive
Now from a pure investment perspective, XRP’s Sharpe Ratio has turned strongly positive as of writing, currently at about 4.2. The Sharpe ratio is a calculation that compares the return of an investment with its risk. And typically, a higher Sharpe ratio indicates good investment performance, given the risk in the asset, which also bodes well for XRP investors.
In conclusion, as of now it seems that XRP is in a good place to stage a further recovery. XRP price has since corrected slightly from its recent highs but thanks to the fact that it is still well above the 50 day moving average and only slightly below the 200-day moving average, XRP seems poised to be a good recovery candidate. But one thing to note is that XRP’s past rallies have often lost steam as quickly as they gained momentum, so deeper research and analysis on the part of the investor is extremely necessary before investing.
Prices as of 26 September 2022.
Additional Read: Top Altcoins 2022