XRP holders and bulls have managed to prevent the token’s price from dropping below $2, even as President Trump’s ‘Liberation Day’ tariffs wiped $140 billion from the cryptocurrency market within a matter of hours.
A Securities and Exchange Commission (SEC) meeting scheduled to take place roughly 7 hours from the time of publication could hold a clue as to why.
At press time, XRP was changing hands at a price of $2.04, having marked a 3.77% decline in the last 24 hours. At present, year-to-date (YTD) losses stand at 1.73%.
Beyond being a key level of support, the $2 mark also represents a crucial psychological barrier, and its breach could easily lead to a wider selloff.
Why the SEC meeting is a crucial catalyst for XRP holders
The aforementioned SEC meeting is a closed one, and its purpose is undisclosed. XRP holders are speculating that the objective of the meeting could be to hold a vote on whether or not to dismiss the appeal that the regulatory body made in its case against Ripple.
Per Ripple CEO Brad Garlinghouse, an agreement to accomplish that very goal was reached on March 19. While the legal minutiae have not yet been taken care of, the Commission is expected to drop the appeal and then move to lift the injunction currently preventing the sale of XRP to institutional investors.
If this is the case, XRP holders would benefit from a strong bullish catalyst. With that being said, amidst the volatility that is currently present in the markets, the odds of a significant move to the upside are slim, as investors move away from risky asset classes such as cryptocurrencies.
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