Why XRP pumped despite the Binance-SEC lawsuit
- XRP has surged by over 13% since 15 May.
- The rally has seen investors’ sentiment spiking to a four-month high.
The timing of a decision in the widely publicized legal dispute between Ripple Labs [XRP] and the United States Securities and Exchange Commission (SEC) was the subject of heightened speculation at press time.
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With forecasts and conjectures of a probable resolution in the next few weeks circulating, XRP’s speculative interest has steadily increased lately.
According to digital assets data provider Kaiko, the Open Interest (OI) in XRP futures rose sharply since the last week of May, touching yearly highs of over $500 million.
XRP has surged by 13% in the same time period, as per data from CoinMarketCap. An increase in OI combined with an increase in price is perceived as new money entering the market via buying, validating the bullish sentiment.
Interest in XRP is back
Further proof that the traders were taking bullish positions was reflected in the funding rates for the sixth-largest crypto by market cap. Since 25 May, funding rates, which measure the cost of holding long or short positions, have been positive as per Coinglass, signaling that more investors are hoping to profit from price increases.
The rally has also seen investors’ sentiment spiking to its near four-month highs, as per Santiment. The buzz around the date of the resolution also made XRP the favorite of crypto-centric social channels, as indicated by the coin’s sharp increase in social volume.
The end is near
While the exact date for the summary judgement remains shrouded in mystery, the coming months could involve a lot of action as per legal experts. Based on an existing trend, prominent pro-XRP lawyer Jeremy Hogan recently took to Twitter to predict that the likely decision may come by mid-July.
The Judge in the Ripple case has been making major rulings about every 9 weeks (Sept. 29, Dec.19, March 6, May 16). And the only major ruling left is on Summary Judgment.
That comes out to mid-July.
NOT a prediction. JUST a pattern. https://t.co/jUM5GNG7Th
— Jeremy Hogan (@attorneyjeremy1) May 25, 2023
Moreover, the XRP community is upbeat about the upcoming release of controversial Hinman documents on 13 June, which allegedly contains details that contradict the SEC’s argument in the case against Ripple.
The SEC had previously filed a move to seal Hinman’s emails and exclude them from the lawsuit, which Judge Analisa Torres dismissed.
Read Ripple’s [XRP] Price Prediction 2023-24
Another proponent of XRP and digital assets, attorney John E Deaton, seemed confident of Ripple Labs’ victory in the controversial lawsuit filed by the SEC in December 2020, which has now entered its third year.
Experts and market participants are closely following the legal battle owing to the implications for the broader crypto market.