XRP Rally Fizzles after SEC Lawsuit Hype

The market returned to normal by Friday. Bitcoin regained its volume dominance in South Korea. Bitcoin lost 0.85%, while XRP suffered a steep decline of 4.70%

XRP price surged early this week, following news of futures players launching XRP indices and amid ongoing hype from the SEC lawsuit. However, the rally fizzled out by Friday, with XRP showing a steep price decline.

What Happened: XRP trading volume surged past Bitcoin (BTC) on South Korean exchanges this week, reflecting a global trend and causing a 20% price rise, according to CoinMarketCap.

Data from CoinGecko showed a major shift in South Korean trading activity, with XRP making up 40% of trading volume on UpBit, the top exchange in the country, and over 35% on Bithumb and Korbit earlier this week.

This change surpassed Bitcoin and Tether’s USDT, indicating a rise in short-term demand for XRP in the Korean market. The trend was also observed on global exchanges, with increased trading volume on Binance and OKX. However, XRP did not surpass Bitcoin or Ethereum (ETH) in global volume leadership.

Open interest in XRP futures contracts doubled earlier in the week, showing bullish sentiment among traders.

By Friday, the market returned to normal, with Bitcoin regaining its volume dominance in South Korea. Bitcoin lost 0.85%, while XRP suffered a steep decline of 4.70%.

South Korean traders are known for fueling euphoric rallies around specific tokens, creating temporary buying pressure and influencing global prices.

“The constant local media coverage and influencer mentions seem to be driving trading volume towards XRP,” a Web3 analyst at CryptoQuant commented.

“There appears to be a sudden increase in trading volume coinciding with the recent SEC-related news.”

The token’s gains began last week when major futures players, CME and CF Benchmarks, announced the launch of XRP indices and reference rates.

This news, coupled with Ripple Labs CEO Brad Garlinghouse’s statement on Bloomberg TV about an expected “resolution very soon” in the ongoing legal battle with the SEC, boosted market confidence in XRP.

“These comments might have instilled greater confidence in the XRP market,” Bitget crypto exchange’s chief analyst said. However, the analyst cautioned against an extended rally, predicting a potential technical correction in early August.

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