Cryptocurrency analytics firm Santiment has revealed that traders are highly bullish on the $XRP token right now, even at a time in which the cryptocurrency has been outperforming the wider cryptocurrency market.
According to a tweet Santiment shared with its over 140,000 followers on the microblogging platform, the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has “mainly led to increased trader optimism & high whale movement.”
As CryptoGlobe reported, the price of XRP has been soaring as both Ripple and the SEC are looking for a ruling in their long-running legal battle through a so-called summary judgment. XRP’s surge means it’s significantly outperforming the wider cryptocurrency market.
According to recent filings, neither party wants the legal action to continue to a full trial. The SEC sued Ripple and two of its executives in 2020, alleging they sold unregistered securities when they issued $1.3 billion worth of XRP tokens. Ripple denies XRP is a security.
Ripple settling the lawsuit could lead to an XRP supply shock, which presumably would lead to a price surge as demand would remain the same, while supply plunged. That’s according to legal expert and XRP supporter Jeremy Hogan, who has been following the case.
Santiment has also recently tweeted out that the flagship cryptocurrency Bitcoin ($BTC) has hit a 3-month low. Its data shows that negative comments on the cryptocurrency “surged to month highs,” and that shorting on exchanges has “at least halted the bleeding.”
Per Santiment, Bitcoin’s social dominance has meanwhile spiked, which “is historically a good bottom signal.”
Recently, Bloomberg commodity strategist Mike McGlone has said that Bitcoin ($BTC) and U.S. Treasury bonds are both dropped to “extreme discounts” amid the Federal Reserve’s hawkish moves to tame inflation.
Year-to-date bonds, stocks, and cryptocurrencies have all plunged while commodity prices rose over macroeconomic factors and Russia’s invasion of Ukraine. The analyst noted that as the Federal Reserve keeps hiking interest rates, investors can expect further corrections down the road.
Despite Bitcoin’s poor performance year-to-date, McGlone has recently reiterated he believes that the price of the flagship cryptocurrency will hit the $100,000 mark. Per the analyst, it’s a “matter of time” until Bitcoin reaches six figures.
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