On April 22nd, Ripple’s XRP experienced a 6% price increase, outperforming other top 10 altcoins in terms of market value. At the time of writing, the token was valued at $0.56. However, subsequent data revealed that the cryptocurrency’s price had reverted to $0.54. Santiment’s data indicated that XRP wallets holding at least one million tokens were nearing an all-time high, a level last observed on June 18th, 2023, which was previously achieved in 2014.
Historical Data Reveals Ripple’s Performance
Historical data demonstrates a 3.1% increase in this metric over the past six weeks. This observation suggests that major investors may have confidence in the cryptocurrency’s price performance. If we examine the data from June, we can observe that the wallets reached their highest level when XRP was priced at $0.47. A month later, the price rose to $0.84. However, this occurred during a period when Ripple achieved a partial victory in its legal battle against the US Securities and Exchange Commission (SEC).
In response to the SEC’s request for a $2 billion fine against Ripple, the blockchain payment company argued against the claim, stating that it was inaccurate. Instead, Ripple offered to pay no more than $10 million. Stuart Alderoty, Ripple’s Chief Legal Officer, expressed his views on the matter via X, stating that Ripple had achieved success on significant issues and that there was no fraud case that warranted a $2 billion fine. The judge’s decision in favor of the SEC could potentially lower XRP’s price, while a decision in favor of Ripple could lead to a similar price increase as seen in July.
Developments in the XRP Case
Contrary to the increasing number of wallets holding over one million XRP tokens, the growth of XRP’s network has declined. Network growth measures the number of new addresses interacting with the network, and an increase in this metric usually indicates greater token adoption. However, as of now, this measure has dropped to 389, suggesting that only a few new addresses are initiating transactions. If the decline in network growth persists, XRP’s price may not experience further increases and could potentially drop to $0.50. Conversely, an increase in this metric could propel the token’s price to a peak of $0.62.
Disclaimer:
The information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.
