Ripple’s XRP Price Surges: Two Key Catalysts Behind the Rally

One of the best-performing cryptocurrencies during the last 24 hours is Ripple’s XRP, which had a 2.5% price increase as of this writing. This spike has helped XRP surpass the critical $0.50 mark and is paving the way for more gains.

Ripple's XRP Price Surges
Source: BBC

Even if the cryptocurrency market as a whole is rebounding, there are particular factors inside Ripple that may be bolstering this upward trend. Let’s examine the main causes of the current price surge in XRP.

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1. Greater Recovery of the Cryptocurrency Market:

The whole cryptocurrency market is beginning to rebound, and Bitcoin is once again pushing towards the $27,000 barrier. Other well-known cryptocurrencies like Ethereum, Cardano (ADA), and Binance Coin (BNB), all of which have seen slight increases over the last day, are also feeling more upbeat.

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This general feeling of optimism has contributed to XRP’s ability to cross the $0.50 threshold. This threshold is a major psychological and technical barrier for XRP, thus breaking through it successfully is a great accomplishment.

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2. The decision made by Ripple to pull out of the acquisition of Fortress Trust:

In the cryptocurrency space, acquisitions frequently inspire hope, but the conditions and timing of the deal are crucial. Early in September, Ripple declared its plan to buy the cryptocurrency-focused organisation Fortress Trust.

But Ripple recently changed its mind and opted against moving through with the transaction. Even though this result is different from what Ripple had anticipated, CEO Brad Garlinghouse said the company would still support Fortress Trust and hopes to work with them again in the future. Although Ripple has decided not to buy the firm altogether, it is still an investor in it.

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Although the precise motivations for this move are unclear, they could have something to do with Ripple’s current legal dispute with the Securities and Exchange Commission (SEC) in the United States. The legal bills for Ripple in this dispute have skyrocketed to a whopping $200 billion.

Allocating resources and setting strategic priorities become critical in these situations. A change in direction and a reassessment of goals might be indicated by Ripple’s withdrawal from the purchase while the business works through its legal issues.

Even while it seems like these two variables are the main causes of XRP’s recent price increase, it’s crucial to remember that Gary Gensler, the SEC Commissioner, was recently subjected to intense grilling during a hearing.

Gensler’s incapacity to respond succinctly and clearly to a number of inquiries sparked additional worries about the regulatory environment. Future paths for XRP and the cryptocurrency sector as a whole will be shaped by the interaction of legislative changes and market forces.

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