The XRP price is on a war path today and has already begun to rally. Interestingly, this rally is coming at a time when the rest of the crypto market is seeing a slowdown with spots of losses here and there. So what is driving the XRP price rally?
Ripple Seeing Some Positive Upsides
A lot of the positive sentiment that has triggered the XRP price rally can be traced back to its parent company, Ripple. Ripple which has had a rally outstanding year continues to seem more upside, especially in the FTX bankruptcy case.
In a new development, a court filing showed that Ripple is set to claim around $11 million in the wake of the FTX collapse. The claim is actually being made by Ripple Singapore against Alameda assets. So in the event of a distribution, Ripple will be receiving 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 encompasses the security status of the XRP token.
As a result, the Kraken crypto exchange, as well as others in the country, are being asked to submit data on customers who traded XRP. However, the exchanges are fighting back and Kraken has backed Ripple in the lawsuit, citing that sharing customers’ 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 around Ripple recently, the XRP price has also entered a period that is considered to be incredibly bullish for its price. According to historical data, December has always been the best-performing month for XRP.
The highest average monthly returns for the XRP price over the years have seen December emerge at more than 100% of the performance across other months. So if this holds, the altcoin’s price could continue to rally as the year runs to a close.
Q4 is also the best quarter for the coin, no doubt as a result of the outperformance that has been recorded by the coin, especially in the month of December. Thus, it is not out of the ordinary that the XRP price is surging today while other cryptocurrencies are down.
There have also been talks of a possible burn of all of the XRP tokens held by Ripple in escrow. Naturally, a burn of this magnitude would cause XRP’s price to explode. But the speculation continues to drive the price for now.
At the time of writing, XRP is trending at $0.64 after rising around 4% in the last 24 hours.
Featured image from Coinpedia, chart from Tradingview.com
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