On Thursday, XRP logged its best daily percentage gain in three months as the U.S. Securities and Exchange Commission (SEC) dropped securities-violations charges against fintech company Ripple’s top leaders.

XRP, the world’s fifth-largest digital asset, rose 6.5% to 52 cents jumping to a high of 53 cents before pulling back to 51 cents at press time, CoinDesk data shows.

In a court filing on Thursday, the SEC agreed to dismiss allegations against Ripple Chief Executive Brad Garlinghouse and co-founder Chris Larsen. The move comes months after the Southern District of New York said Ripple’s offer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts as alleged by the SEC.

Roughly three years ago, the SEC accused Ripple Labs, which has close ties with XRP, of violating securities laws by raising $1.3 billion through XRP sales to investors. The legal trouble kept XRP under pressure, even as the broader market surged.

Spot-led move

Buyers from the spot market likely powered Thursday’s rally in XRP. Spot-driven rallies are said to be more sustainable than those led by leverage traders.

Data from Coinalyze shows that cumulative volume delta (CVD) in spot exchanges rose along with XRP’s price, indicating net inflow into the market. Meanwhile, CVD in stablecoin and coin-margined futures markets remained flat.

A rising CVD means more buyers are in action, while a negative-sloping line implies there are more sellers.

Range breakout pending

Though impressive, Thursday’s gain fell short of ending a two-month price consolidation between 49 and 45 cents.

Range play, representing volatility meltdown, often paves the way for a big move in either direction. The logic here is that the market builds energy during consolidation, which is then unleashed in the direction where the range is eventually breached.