Amid a massive dip in the cryptocurrency market, most of its major assets are declining, and XRP is no exception, having lost over 13% on the day, which has added to the loss of nearly 20% on its weekly chart, but there are more reasons behind the token’s crash than just the bearish market sentiment.
Indeed, the XRP crash has also coincided with the court in the case between blockchain company Ripple and the United States Securities and Exchange Commission (SEC) granting the regulator’s request for a motion for leave to file an interlocutory appeal on August 17.
Additionally, as Finbold reported earlier, XRP has erased $4 billion from its market capitalization following the price crash, dwindling from $31.05 billion to $26.67 billion – a 13.82% drop in a single day.
SEC appeal fears
Although legal experts have said that this does not mean that Judge Analisa Torres has authorized an early appeal, it has nonetheless sparked fear in the cryptocurrency industry, particularly among the holders of the XRP token, leading to a massive price decline.
With the recent drop, XRP has effectively erased most of its gains following the major win in the case against the SEC, when Judge Torres ruled that the XRP sales by Ripple did not constitute securities sales, which had sparked a major bullish rally that had briefly brought the price of the token to over $0.82.
XRP price analysis
At press time, XRP was changing hands at the price of $0.5053, which represents a decline of 13.51% in the last 24 hours, a 19.90% drop across the previous seven days, and a drop of 35.29% on its monthly chart, as per the most recent information on August 18.
On the other hand, the hope of quick recovery remains as cryptocurrency analyst Cryptoinsightuk observed that XRP had still managed to close the day above its 200-period simple moving average (SMA), which was a bullish sign, according to the crypto expert’s analysis shared in an X post on August 18.
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