XRP’s double-digit gains could be the result of a bold bet by retail investors, especially those in Asia, that the cryptocurrency’s price could follow the broader crypto bull run. The latest rally surprised many because it is happening not long after XRP crashed on the news the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Inc., claiming the company sold the token as a security.
That said, it seems as if some market participants are undeterred by the regulator’s action.
“Traders often trade products on a relative value basis,” Chris Thomas, head of digital assets at Swissquote Bank, told CoinDesk on Jan.7. “XRP felt cheap a few days ago. Today it feels normal again, in my opinion.”
Simons Chen, a crypto trader based in Hong Kong, told CoinDesk he bought XRP when the price went to