As litigation between the SEC and Ripple drags on, XRP appears to be benefiting from it.
Since litigation began in December 2020, it has been thought that the end of XRP was near. However, this notion has been changing recently as courts continue to rule in favor of cryptocurrency companies.
Ripple wins again
On March 12, a district judge allowed Ripple to use the fair notice defense by denying the SEC's motion to dismiss. This gives Ripple the opportunity to argue on the grounds that the SEC failed to inform how the sale of Ripple XRP violated pre-established law.
Since then, XRP has gone up in price K-line chart. It seems that Ripple will definitely benefit from the ruling. In addition to winning favor, its token XRP has also won over investors, with the cottage coin rising 9.06% in 24 hours.
XRP Price Trend | Source: TradingView – AMBCrypto
However, it is important to note the lack of conviction in this rally. As this was an euphoric rise, rather than an organic one, the chain performance did not show any positive changes either.
Transaction counts on the network barely changed, indicating that people were not engaging in transactions regardless of the rise. The month-long slippage resulted in less than 1.4 million transactions being made on the chain.
XRP Transaction Count | Source: Coinmetrics – AMBCrypto
This lack of confidence may also be a result of the high volatility observed in the case of XRP. Volatility at 5-month highs may be preventing investors from acting out of fear.
XRP Volatility | Source: Coinmetrics – AMBCrypto
However, with Ripple's lawsuit verdict and XRP's relatively high market cap of 1.1 to 1.2, the possibility of investors continuing to flock to the cryptocurrency cannot be ruled out.
XRP Market Capitalization | Source: Coinmetrics – AMBCrypto
In addition, investors are still betting on a possible return to $1 for XRP, given that the token has managed to hold the key support level of $0.71.