XRP has secured a major legal victory over the SEC. This event has set a precedent in the digital asset industry, potentially reshaping the future regulatory landscape, particularly in terms of whether or not digital assets should be considered securities in the United States.
CCData details the events that led up to this milestone ruling, the response by the wider market and what's next for the space. You can access the full blog here.
Following The Ripple Lawsuit Ruling:
- The price of XRP pushed as high as $0.93, recording the highest price since May 2021.
- XRP trading pairs on centralised exchanges recorded an influx of activity, with volume totalling $6.05bn on the day, an increase of 1351% from the previous day.
- Other tokens such as Solana and Cardano, which have been recently deemed securities, saw significant daily gains of 35% and 28%, in light of the ruling.
The Ripple Case: 2020 - 2023
Yesterday, the digital asset industry witnessed an event that may define its future - namely, the ruling surrounding XRP in the SEC's lawsuit. The official ruling by Judge Torres in favour of XRP signifies not just a triumph for Ripple, but could also signify a shift in the way digital assets are perceived and regulated in the U.S.
The verdict of the lawsuit has been long-awaited and provides fresh optimism in light of the current regulatory action levelled against the industry. For one, it has the potential to set a precedent for similar cases and assets.
Timeline of Ripple Labs Lawsuit, 2020-2023
XRP Price Surges Following Ruling
Following the positive news, the price of XRP pushed as high as $0.93, recording the highest price since May 2021.
The news also led to an influx of trading activity, with XRP trading pairs on centralised exchanges recording a total volume of $6.05bn on the day, an increase of 1351% from the previous day.
Other tokens such as Solana and Cardano, which have been recently deemed securities, saw significant daily gains of 35% and 28%, respectively, in light of the news.
XRP Ruling Catches Market Participants Off Guard
Using CCData’s order book data, we can see that this move clearly took most speculators by surprise, given the large congregation of orders within a very tight range around $0.45, which is represented by the high-intensity intensity yellow colouring prior to the announcement.
Resting sell orders up to $0.60 can be observed in the heatmap, which ended up getting filled on the aggressive move upwards. The fact they were filled prior to being pulled underscores the unexpected nature of the move, which still increased another ~55% to $0.95 from $0.60 due to the sheer volume of buy delta.
- Large Block of orders on both sides of the price, indicating a tight range and expectation of low volatility.
- Laddered sell orders at regular price intervals up to $0.60, showing a desire for orders to get filled, which they were.
- Empty space on the bid side as the price moved aggressively higher, indicating the sharpness of the move and the difficulty in refilling the orderbook.
XRP Liquidity Remains Resilient YTD
Despite the negative backdrop that XRP has faced due to the lawsuit, its market depth liquidity at the 1% level has remained resilient year-to-date (YTD).
XRP’s 1% bid/ask side depth at Yearly Open was 26.5 million XRP, which saw a variance of 0.41% throughout the year and remained strong at XRP 25.1 million on the 12th of July. This overall stability and low variance have been good indicators of the potential perceived risk of market-making on the XRP pair.
The information provided by this report does not constitute any form of advice or recommendation by CCData. Any redistribution of charts appearing in this Review must cite CCData as the sole provider and creator.
About CCData
CCData is an FCA-authorised benchmark administrator and global leader in digital asset data, providing institutional and retail investors with high-quality real-time and historical data. Leveraging its track record of success in data expertise, CCData's thought-leadership reports and analytics offer objective insights into the digital asset industry.
