XRP, the digital token linked to Ripple, has suffered a significant price drop, aligning with the broader cryptocurrency market’s downtrend. Currently trading at $0.52, XRP is down by 11.04% in the last 24 hours, according to data from Coinpedia. This sharp decline contrasts other top digital assets, which have seen more moderate losses of around 3%. The substantial dip in XRP’s value raises concerns among investors and market participants.
Source: Coinpedia
Also Read: SEC Appeals Judge Torres Ruling on XRP Classification, What Does this Mean for XRP?
SEC Appeal Causes Ripple’s Drop
The primary factor behind XRP’s steep drop is the U.S. Securities and Exchange Commission’s (SEC) decision to file an appeal in its ongoing legal case against Ripple. The recent appeal by the SEC concerns the recent ruling by Judge Analisa Torres that favored Ripple over programmatic sales of XRP. The court had discovered that Ripple did not violate the laws governing securities in this regard. However, the appeal of the SEC action remains anchored on this particular point that has brought a new type of uncertainty to the market.
Despite the favorable ruling that XRP is not a security, the SEC’s renewed legal challenge regarding the sales aspect has sent ripples of concern through the market. Investors are reacting to the uncertainty around how the appeal could impact Ripple’s future operations and XRP’s long-term status.
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Conclusion
The latest drop in XRP highlights the persistent legal threats it faces, particularly as the United States Securities and Exchange Commission (SEC) pursues its lawsuit against Ripple. The SEC’s appeal of a recent favorable verdict for Ripple has raised additional worries, resulting in an unstable market environment and dramatically increased volatility. Investors remain cautious, looking for developments that might influence XRP’s valuation and regulatory position. As the court battle proceeds, the uncertainty surrounding XRP’s long-term future puts traders and investors on edge, adding to the token’s volatile price changes.
Also Read: U.S. Senate Candidate John E. Deaton Criticizes SEC’s Appeal in Ripple Case
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.