XRP’s price has seen a sharp decrease of over 13%, plunging to the $0.508 threshold due to various influences.
Prior to this drop, XRP was at a level similar to its position before the positive decision in the Ripple lawsuit on July 13. This downturn is linked to a recent 14% decline fueled by events in the legal battle and overall market turbulence.
XRP Falls To $0.5 Level
After reaching a peak of $0.9380 on July 13, XRP managed to keep some of its gains influenced by the legal outcome.
XRP’s value declined past the $0.80 point later in July and found some stability around the $0.70 mark. Yet, on August 4, it slipped below $0.70 after three continuous days of unfavorable trends.
Since August 4, XRP has maintained around $0.60. But this stronghold was recently breached. A 13% decline marked its fall to $0.508, a price unseen in over a month.
Why The Slump?
XRP’s decline of 13% in the last 24 hours can be attributed to intense selling due to concerns about the ongoing Ripple vs. SEC lawsuit and general negative sentiment in the crypto market.
- Update On Sec Vs. Ripple Lawsuit
Recently, Judge Analisa Torres granted the SEC’s plea in the Ripple case, allowing them to file a motion for an appeal.
To clarify, the SEC had on August 9 requested permission to appeal Judge Torres’ decision on Ripple’s XRP sales. Ripple replied on August 16, hoping for a dismissal. With the latest approval, the SEC can proceed with its appeal, which seems to have aggravated XRP’s decline.
- Cryptocurrency Market In Distress
Another reason for XRP’s drop to $0.5 is the wider crypto market’s current condition. The entire market witnessed a massive dip, with liquidations worth $1 billion in just a day. Bitcoin experienced its most significant liquidation since June 2022.
This decline is connected to a sudden increase in US bond yields, influenced by the recent FOMC minutes. These minutes indicated a possible interest rate hike. Furthermore, the global crypto market also reacted to China’s real estate titan, Evergrande, filing for Chapter 15 bankruptcy. All these elements further strained XRP’s position.
- Misleading News Impact
Jeremy Hogan, a lawyer supportive of XRP, highlighted the possibility of misleading news influencing XRP’s value. He referred to a Yahoo! article discussing Judge Torres’s recent decision favoring the SEC.
He posed a question on a platform, asking if such news is causing XRP to decline more than other cryptocurrencies.
It’s essential to note that while the entire market is struggling, XRP’s 13% dip in a day places it among the top three worst performers on the top 100 assets list.
While such news headlines might not be the primary reason for XRP’s fall, they can amplify investor worries. This could lead to more sales and further price reductions.
Currently, XRP trades at $0.508, showing a 20% decrease over the week. Now, it aims to regain and solidify its position above the $0.50 mark to guard against future declines.
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