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Ripple’s XRP managed to increase by a whopping 10% in the past 24 hours, pushing past the important $0.5 resistance and also leading the recovery of the broader altcoin sector.
As CryptoPotato reported earlier, the entire industry is seeing an uptick, with Bitcoin’s price also increasing toward $59K.
But why did XRP’s price suddenly shoot up? Let’s explore some of the possible reasons.
Volatility Was Due to XRP’s Price
Earlier in July, we reported that a historic pattern was forming on the Ripple chart, suggesting a volatile move was brewing.
The pattern in question included the Bollinger Bands indicator – a technical tool used by analysts to gauge volatility.
Back then, the bands were squeezed to levels not seen in many years. In fact, an X user observed that:
XRP has one of the tightest monthly Bollinger Band squeezes in its history and in all of crypto right now. The last time it squeezed like that, it shot up 60,000%.
Naturally, the move didn’t comprise a 60,000% increase, but the pattern could have been one of the reasons for which XRP’s price saw increased volatility in the past 24 hours.
Ripple v. SEC Lawsuit: Rising Speculations and Positivity
Bollinger bands may explain why the volatility picked up. But that volatility can go either way.
On that note, there have recently been increased speculations that the lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) might be coming to an end.
Given that XRP scored a major yet partial victory last year when a judge ruled that secondary XRP sales do not constitute an offer of investment contract, the community is optimistic that the legal battle may end in Ripple’s favor.
Of course, these are nothing but speculations, and there aren’t any developments that substantiate them.
However, it might be the case that investors are piling in on the trade, expecting a positive outcome.
The post The Possible Reasons Ripple (XRP) Exploded by 10% Today appeared first on CryptoPotato.
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