XRP’s value rebounded off lows of $0.17 in January to reach highs near $2 despite negative sentiment around the SEC case
The US Securities and Exchanges Commission (SEC) sued Ripple Labs and its top executives in December 2020 for what the agency says was the illegal sale of XRP.
Despite this negative development for the blockchain company, the native XRP token has largely remained unaffected by the ongoing lawsuit.
According to Mike Novogratz, the chief executive officer of crypto investment firm Galaxy Digital, XRP’s value has gone up since the case began. The cryptocurrency’s performance over the past ten months has included more gains, even nearly tripling in value, the Galaxy Digital CEO noted.
The early Bitcoin investor went on to say that XRP’s performance illustrates how resilient the crypto community is once it rallies around a given cryptocurrency.
According to Novogratz, XRP is benefiting from the same community resilience observed with the GameStop (GME) stock and meme coin Dogecoin (DOGE). The SpaceX board member thinks the community is what is giving projects and coins value, referring to it as “a fairly new phenomenon“.
XRP price did plunge soon after the SEC’s lawsuit was announced, losing nearly 70% over two weeks between 21 December 2020 and 3 January 2021. The XRP/USD pair saw its value nosedive from highs of $0.58 to lows of $0.17 at a time other top cryptocurrencies led by Bitcoin were surging to new highs.
The dump came as cryptocurrency exchanges reacted to the SEC lawsuit by delisting XRP or halting its trading. The coin however picked up eventually to rally to highs of $2, with the price rebounding following the mini bear market seen during May.
While XRP price remains poised for more gains as it trades above $1, it has failed to mirror top altcoins like Ethereum or Litecoin in reaching a new all-time high. At the time of writing, XRP’s value is about 67% off its all-time high of $3.40 reached on 7 January 2018.