The XRP price went up 26%. This happened after a New York federal judge drew closer to settling a 3-year securities action against Ripple Labs.
In a case filed by the Securities and Exchange Commission, a federal judge ruled on August 7 that Ripple Labs was “permanently restrained and enjoined” from breaking US securities laws and ordered the company to pay a penalty of $125 million.
According to various data, XRP surged 26% to $0.63 upon discovering the news, recovering the majority of its losses from the wider cryptocurrency decline since August 5. XRP was trading at $0.59.
“This is a victory for Ripple, the industry, and the rule of law,” said Brad Garlinghouse, CEO of Ripple Labs, shortly after in an X post.
“The SEC’s unhinged campaign against us is finally over. Let’s all hope this ends this Administration’s war on crypto,” Ripple Labs co-founder Chris Larsen said in a post on X.
Nonetheless, the price fluctuation of XRP in the wake of the judgment caught the attention of other cryptocurrency analysts as well.
“Overall, a HUGE win for Ripple. Although I’m surprised at the $125M hit, Ripple more than made that just on the price move in XRP in the last 5 minutes,” crypto lawyer and founder of Hodl Law Fred Rispoli wrote in an Aug. 7 X post.
“XRP IS READY TO FLY. NO MORE HOLDING IT BACK! NO MORE PRICE SUPPRESSION! THE LAWSUIT IS DONE!!” crypto researcher Ripple Van Winkle told their 108,400 X followers.
Potential traders were taken aback by the price spike, which in just four hours wiped off 40% more short positions than long ones. Data from CoinGlass indicates that following the price spike, short positions of $5.4 million were closed.
