The Cause Of XRP Prices Rising, Because Of This!

The cause of the XRP price is rising. (Photo; Doc. NairaMetrics)

JAKARTA - Ripple (XRP) has recorded a significant price spike, hitting its highest level in the past seven years above $3 per coin. The increase comes after the US Securities and Exchange Commission (SEC) appealed against a federal court ruling stating that the Ripple token was not an unregistered securities.

According to data from CoinGecko, XRP has seen a price increase of 46% this month, with a 30% spike in just the past week. This prompted its market cap to exceed $175 billion, exceeding the assets of leading financial manager BlackRock, valued at 156.9 billion US dollars (approximately IDR 2,540 trillion).

Analysts noted that XRP's latest price performance was the fastest increase since the altcoin boom in January 2018. The 14-month XRP Relative Growth Index (RSI) indicator reached 92, the highest level since October 2017, showing strong momentum since early 2024.

The price of XRP soared after the SEC filed an appeal on January 15 to the Second Circuit Court of Appeals, challenging Judge Analysis of Torres' decision to win Ripple Labs.

Judge Torres decided that XRP's sale to institutional investors was an unregistered securities offering, while sales to retail investors through exchanges were not the case, because buyers did not know the seller's identity.

The SEC argues that Ripple's efforts to make XRP an investment contract based on Howey's test, a framework used to determine whether a transaction meets the requirements as a securities.

Ripple Labs CEO Brad Garlinghouse, through his official account, called the financial regulator's efforts "definition of madness." He highlighted that SEC Chair Gary Gensler was very concerned about Judge Torres' decision.

Ripple's head of law, Stuart Alderoty, also dismissed the SEC's appeal, calling it a "repetition of failed arguments." "We will respond officially in time. For now, know: the SEC lawsuit is just noise. A new era of regulations that support innovation is coming, and Ripple is growing rapidly," he added.

The XRP market responded positively after news of the SEC's appeal emerged, with the currency rising nearly 10% in the last 24 hours. However, different reactions occurred in the South Korean market, where this cryptocurrency fell 2% against local currencies in the same period.

XRP's derivative market activity has also increased, with open interest in the perpetual futures contract hitting a record 2.34 billion XRP, and the funding rate stable at around 10%. This shows a healthier market condition compared to the early December situation, when funding levels soared to 100%, causing market price corrections over the past few weeks.

Analysts indicated that these tokens had entered the breakout stage of a symmetric triangular pattern, signaling the potential for further rise. They predict XRP could rise to USD 3.80 (approximately IDR 61,560) by the end of January, an increase of 25% from the current level.