XRP’s price reached nearly 56 cents on Tuesday, as traders speculated that a much-expected document release related to an on-going lawsuit between payment company Ripple Labs and the U.S. SEC could boost XRP price
XRP prices dipped 8.5 per cent in a day, declining the most among the biggest cryptocurrencies, as digital asset markets saw a sudden sell-off on Wednesday.
The token dropped to as low as 46.18 cents, its lowest this month, as per CoinDesk Indices data. XRP’s price reached nearly 56 cents on Tuesday, as traders speculated that a much-expected document release related to an on-going lawsuit between payment company Ripple Labs and the U.S. Securities and Exchange Commission (SEC) could boost XRP price.
XRP’s steep downturn took place as bitcoin and ether, the two top cryptocurrencies in terms of market capitalization, lost key price levels on Wednesday afternoon after the U.S Fed’s latest interest rate decision. Despite the Fed halting its rate raise campaign after 14 months, an event most traders thought would be bullish for prices, bitcoin and ether fell below $25,000 and $1,700, respectively, to 3-month lows.
The Securities and Exchange Commission sued Ripple in 2020 alleging that the company sold unregistered securities, namely XRP. Ripple, nevertheless, historically has distanced itself from the token, which powers some of its products and the XRP Ledger network.
XRP rallied earlier during the week amid the release of emails from William Hinman, former director of Securities and Exchange Commission’s Division of Corporation Finance. Bullish traders speculate that Hinman’s speech would underscore the Securities and Exchange Commission’s fallacious reasoning for considering the token a security, pointing to a favourable outcome for Ripple Labs in its on-going lawsuit between the company and the Securities and Exchange Commission.
Speculation about the lawsuit’s closure have periodically encouraged keen XRP price predictions. Presently, we notice huge speculative narratives around Ripple, which could potentially result in a considerable price rise for XRP during the next three to four months, pushing its value to anywhere between $10 and $30, crypto hedge fund manager Thomas Kralow cited in a note earlier during the week.
