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Possible Reasons Why Ripple (XRP) Exploded 10% Today
Ripple’s XRP has managed to surge by an incredible 10% in the last 24 hours, breaking above the important resistance of $0.5 and also leading the recovery of the broader altcoin sector.
Like CryptoPotato reported Previously, the entire sector was seeing a recovery, with the price of Bitcoin rising towards $59,000.
But why has XRP’s price suddenly skyrocketed? Let’s explore some of the possible reasons.
The volatility was due to the price of XRP
At the beginning of July, we reported that a historical pattern was forming on the Ripple chart, suggesting that a volatile move was brewing.
The model in question included the Bollinger Bands indicator, a technical tool used by analysts to measure volatility.
At the time, the bands were compressed to levels not seen in many years. In fact, one user X observed that:
XRP has one of the tightest monthly Bollinger Band squeezes in its history and of all cryptocurrencies right now. The last time it squeezed like that, it jumped 60,000%.
Of course, the move didn’t result in a 60,000% surge, but the pattern may have been one of the reasons why XRP’s price has seen increased volatility over the past 24 hours.
Ripple vs. SEC lawsuit: Growing speculation and positivity
Bollinger Bands could explain why volatility has increased. But this volatility can go both ways.
In this regard, there have recently been Speculations are increasing that the lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) may be coming to an end.
Given that XRP scored a major but partial victory last year, when a judge ruled that secondary sales of XRP do not constitute an investment contract offering, the community is optimistic that the legal battle could end in Ripple’s favor.
Of course, this is nothing more than speculation and there are no developments to confirm it.
However, it could be that investors are flocking to the transaction, expecting a positive outcome.