XRP is shrugging off its recent price woes with a double-digit rise Thursday.
The cryptocurrency was trading near $0.35 soon before press time, representing a nearly 50% gain on a 24-hour basis.
As a result, XRP's market capitalization has increased to $13.88 billion, moving it above litecoin as the fourth-largest cryptocurrency, according to CoinDesk 20 data. Other cryptocurrencies such as bitcoin, ether, and litecoin are also trading higher. Bitcoin rose to fresh record highs above $38,000 early today.
However, despite XRP's bounce, prices are still down 57% from highs above $0.55 observed before the U.S. Securities and Exchange Commission filed a lawsuit against Ripple Labs, the San Francisco-based developer of the Ripple payment protocol and exchange network, for raising $1.3 billion over seven years from retail investors through its sales of XRP.
It remains to be seen if the latest recovery has legs or turns out to be a "dead-cat bounce" – a temporary recovery of asset prices from a notable decline or a bear market followed by a continuation of the downtrend.
According to analysts, the U.S. Office of the Comptroller of the Currency's (OCC) recent decision to allow U.S. banks to use public blockchains and dollar-backed stablecoins as a settlement infrastructure in the financial system is favorable for XRP and payments-focused Stellar blockchain's XLM token.
XRP, however, may have a hard time cheering the good news until it has dealt with the SEC case, Denis Vinokourov, head of research at the London-based prime brokerage Bequant told CoinDesk on Wednesday.
UPDATE (Jan. 7, 19:17 UTC): Corrects XRP market value.
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