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by Aishwarya shashikumar
The XRP community faced disappointment yesterday as the coin’s price took a dramatic dive. According to CoinMarketCap, the token fell below $0.60, hitting a 24-hour low of $0.5869. In just three hours, the price dropped from $0.6215 to $0.5866, marking a 5.61% decline. However, the dip was brief. The seventh-largest cryptocurrency by market cap quickly rebounded above the $0.60 mark.
Community leader Common Sense Crypto pointed to a recent closed-door meeting at the SEC’s headquarters as the cause of the price drop. There had been speculation that the SEC might settle its lawsuit with Ripple, which led to the token’s price spiking to around $0.64. The meeting’s agenda suggested the settlement of administrative proceedings and injunctive actions. Many XRP holders hoped for a favorable outcome.
However, when the meeting concluded without a settlement, a sell-off ensued. Common Sense Crypto noted that such sell-offs are common whenever SEC meetings fail to deliver positive news. This pattern shows that investors often lose confidence and sell their holdings when expected outcomes do not materialize.
XRP Investor Sentiment and the Ripple Lawsuit
Investors are eagerly awaiting the resolution of the SEC v. Ripple lawsuit, which has been a cloud over XRP since December 2020. The lawsuit has hindered the token’s performance, preventing it from hitting new all-time highs during the 2020/2021 market cycle, unlike many other cryptocurrencies. The token’s previous all-time high of $3.84 was set on January 4, 2018.
The market reacts strongly to rumors about the lawsuit’s resolution. When there are whispers of a potential settlement, XRP’s price tends to rise. Conversely, the price falls when such rumors do not come to fruition. Currently, the token is down 1.02% over the past 24 hours, trading at $0.6067.
The XRP community continues to watch the SEC v. Ripple lawsuit closely, understanding its significant impact on XRP’s market performance. While the recent drop was a setback, the cryptocurrency’s quick rebound above $0.60 offers a glimmer of hope. Investors remain on edge, ready to react to any news regarding the lawsuit, knowing it holds the key to XRP’s future price movements.