By
Bena Ilyas
May 16th, 2024
Amidst the legal battle and regulatory scrutiny, July 2023 witnessed a seismic shift in the narrative surrounding the case.
In a recent development, XRP, a major player in the crypto market, has surrendered all the gains it made following a partial legal victory by its parent company, Ripple Labs Inc, over the US Securities and Exchange Commission (SEC). A recent report has revealed that the once-promising token, which had soared to impressive heights, has been grappling with a series of substantial setbacks.
XRP has experienced a roller coaster ride in recent months. The catalyst for this upheaval was Ripple Labs’ high-profile court battle against the US SEC. The landmark ruling in July sent shockwaves through the crypto community and had a profound impact on XRP’s trajectory.
Data show that XRP peaked at $0.83 on July 20, presumably on a positive trajectory fueled by market optimism. However, this upward momentum was subsequently curtailed by the recent bearish sentiment in the crypto market.
Over just a week, XRP saw its value plummet by 14%, reflecting the volatility that has come to define the crypto landscape. Moreover, the token’s value suffered a more substantial decline of 30% over 30 days.
A particularly significant development has been the fact that XRP now trades at 50 cents, a sharp contrast to its earlier glory. This recent price level brings the token back to where it was prior to the SEC ruling, signifying the degree to which the bearish sentiments have effectively wiped out its gains.
One of the crucial aspects influencing this turbulent journey has been the shifting approach of traders toward their investment strategies. In stark contrast to the traditional buy-and-hold system that encourages a long-term outlook, traders have increasingly focused on seizing short-term gains through active and frequent buying and selling.
This profit-taking approach, driven by a desire to capitalize on price fluctuations, has contributed to the volatility that tokens like XRP are currently experiencing.
The Sustained Ripple and SEC Legal Battle
The year 2020 marked a pivotal moment in the cryptocurrency landscape as the US SEC refueled its regulatory attention toward Ripple.
The SEC’s allegations centered on the sale of unregistered securities through Ripple’s offerings, prompting a legal battle that has since sent uncertainty through the industry. At the heart of this dispute lies XRP, the token that fuels Ripple’s products and the XRP Ledger network.
Amidst the legal battle and regulatory scrutiny, July 2023 witnessed a seismic shift in the narrative surrounding the case. US Judge Analisa Torres delivered a ruling, asserting that the sale of XRP tokens on exchanges did not qualify as investment contracts.
This ruling marked a turning point, injecting a degree of clarity and direction into a saga that had hitherto been characterized by ambiguity and speculation. However, the legal tussle is still far from over.
Appeals lodged against the ruling by the SEC have maintained an element of uncertainty, preventing a definitive resolution and underscoring the complex and evolving nature of crypto regulation.