XRP price is on a war path today and has already started to rebound. Interestingly, this rally is coming at a time when the rest of the cryptocurrency market is slowing down with losses here and there. So what is driving the XRP price rise?
Ripple showing positive upward trend
Much of the positive sentiment that has fueled the rise in XRP price comes from XRP’s parent company, Ripple. Ripple, which has rallied through an outstanding year, looks set to see further gains, especially in the wake of the FTX bankruptcy.
In a new development, court documents show that Ripple is seeking approximately $11 million due to the FTX collapse. This claim is actually being made by Ripple Singapore over its Alameda assets. Therefore, if a distribution occurs, Ripple will receive a payment from FTX.
Ripple also received support from Kraken, one of the world’s largest cryptocurrency exchanges, in its ongoing lawsuit. Zakinov v. Ripple’s lawsuit is a fight over the security status of its XRP token.
As a result, Kraken cryptocurrency exchange and other exchanges in the country are being asked to submit data on customers who traded XRP. However, the exchanges fought back, and Kraken supported Ripple in the lawsuit on the grounds that sharing customer data could be interpreted as the exchange siding with the plaintiff (Zhakinov).
XRP sees a bullish impulse to $0.64 | Source: XRPUSD On Tradingview.com
Months when XRP price rises
In addition to the positive news that has emerged recently around Ripple, the price of XRP has also entered a period of incredibly strong strength relative to its price. Historical data shows that December has always been the best performing month for XRP.
The past few years have seen the highest average monthly returns for the XRP price, with December outperforming other months by more than 100%. So, if this holds up, altcoin prices could continue to rise as the year draws to a close.
The fourth quarter was also the best quarter for the coin, especially as a result of its outstanding performance in December. Therefore, it is not strange to see the price of XRP soaring today while other cryptocurrencies are falling.
There was also talk that there was a possibility that all XRP tokens held by Ripple in escrow would be burned. Naturally, a burn of this magnitude would cause the price of XRP to explode. But for now, speculation continues to drive prices higher.
As of this writing, XRP is trending at $0.64 after rising about 4% over the past 24 hours.
Featured image from Coinpedia, chart from Tradingview.com
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