The possible reasons why Ripple (XRP) exploded 10% today

Ripple’s XRP managed to rise 10% in the last 24 hours, breaking through the important $0.5 resistance and also leading the recovery of the broader altcoin sector.

As previously reported by CryptoPotato, the entire industry is experiencing a surge, and the price of Bitcoin is also rising to $59,000.

But why did the price of XRP suddenly skyrocket? Let’s explore some of the possible reasons.

The volatility was due to the price of XRP

In early July, we reported that a historical pattern was forming on the Ripple chart, suggesting a volatile move was brewing.

The pattern in question included the Bollinger Bands indicator, a technical tool used by analysts to measure volatility.

Bands then tightened to levels not seen in many years. In fact, one X user noted that:

XRP has one of the tightest monthly Bollinger Band pressures in its history and in all of crypto right now. The last time it tightened like this, it shot up 60,000%.

Naturally, the move did not include a 60,000% increase, but the pattern may have been one of the reasons why the XRP price saw increased volatility in the last 24 hours.

Ripple vs. SEC Lawsuit: Speculation and Positivity Rise

Bollinger Bands can explain why volatility increased. But that volatility can go either way.

In this regard, speculations have recently increased that the lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) may be coming to an end.

Since XRP scored a major but partial victory last year when a judge ruled that secondary sales of XRP do not constitute an offer of an investment contract, the community is optimistic that the legal battle may end in Ripple’s favor.

Of course, these are nothing more than speculations, and there is no news to corroborate them.

However, it could be the case that investors pile into the trade, hoping for a positive outcome.

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