The XRP price is on a warpath today and has already started to rise. Interestingly enough, this rally comes at a time when the rest of the crypto market is seeing a slowdown, with some losses here and there. So what is driving the XRP price rally?
Ripple sees some positive aspects
Much of the positive sentiment that has driven the XRP price rally can be traced back to parent company Ripple. Ripple, which has had an excellent year, continues to look more positive, especially in the FTX bankruptcy case.
In a new development, a lawsuit revealed that Ripple is set to claim approximately $11 million in the wake of the FTX collapse. The claim is actually filed by Ripple Singapore against Alameda assets. So in the event of a distribution, Ripple receives a payout from FTX.
Additionally, Ripple has received support from Kraken, one of the largest crypto exchanges in the world, in an ongoing lawsuit. The lawsuit titled Zakinov v. Ripple is a battle that involves the security status of the XRP token.
As a result, the crypto exchange Kraken, as well as others in the country, are being asked to submit data on customers who have traded XRP. However, the exchanges are fighting back and Kraken has supported Ripple in the lawsuit, arguing that sharing customer data could be interpreted as the exchange siding with the plaintiff (Zakinov).
XRP sees a bullish impulse to $0.64 | Source: XRPUSD On Tradingview.com
A bullish month for XRP price
In addition to the positive news that has emerged recently around Ripple, the XRP price has also entered a period that is considered incredibly bullish for its price. According to historical data, December has always been the best performing month for XRP.
The highest average monthly return that the XRP price has seen over the years December shows up on more than 100% of the performances about other months. So if this continues, the altcoin’s price could continue to rise as the year draws to a close.
The fourth quarter is also the best quarter for the currency, undoubtedly due to the outperformance the currency has achieved, especially in December. So it is not unusual for the XRP price to rise today while other cryptocurrencies fall.
There have also been talks about a possible burning of all XRP tokens held by Ripple. Naturally, a burn of this magnitude would cause the price of XRP to explode. But speculation continues to drive the price for the time being.
At the time of writing, XRP is trending at $0.64, having risen about 4% in the last 24 hours.
Featured image from Coinpedia, chart from Tradingview.com
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