In the wake of a brief uptrend that saw XRP surpass $0.50, the cryptocurrency experienced a minor decline. Despite this, XRP managed to erase its weekly losses, standing out as the only top cryptocurrency to register a slight increase during the same period.
The price action was accompanied by a surge in open interest (OI) as investors closely followed the ongoing legal dispute between Ripple and the US Securities and Exchange Commission (SEC). The rise in OI indicates that investors are opening positions in anticipation of a price increase, as per CryptoQuant's analysis.
The on-chain analytic platform also noted heightened trading activity around XRP, currently the seventh-largest cryptocurrency by market cap. This trend could signal bullish investor sentiment, but it could also introduce potential market volatility.
The legal battle between Ripple and SEC, which began in December 2020, revolves around allegations of unregistered securities offerings through XRP sales. The latest disagreement pertains to the size of Ripple's potential penalty, with the SEC proposing a $102.6 million fine, significantly lower than the initial $2 billion.