XRP Relinquishes Entire Post-SEC Victory Rally
After a groundbreaking legal triumph by Ripple Labs, the value of XRP has undergone a decline due to the existing bearish sentiment prevailing in the market.
The general negative outlook in the broader market has influenced the valuations of various tokens, XRP included, even amidst their positive underlying fundamentals. Traders have shown a preference for leveraging short-term price fluctuations to secure quick gains, rather than embracing a long-term strategy of holding assets.
Data analysis demonstrates that XRP, a prominent token in terms of market capitalization, has relinquished a substantial portion of its previous gains following Ripple Labs' significant courtroom victory against the U.S. Securities and Exchange Commission (SEC) in July.
As of the most recent Wednesday, the trading price of XRP stood at 50 cents, showcasing a decline of 14% over the course of the preceding week and a more significant drop of 30% within a 30-day span. Analyzing the price charts reveals that the token had reached its peak for the year at 83 cents on July 20. However, its current valuation has regressed to levels observed prior to the SEC's decision.
The legal dispute between Ripple and the SEC emerged in 2020 when the regulatory body accused Ripple of unlawfully selling unregistered securities. Despite Ripple's historical separation from the XRP token and the XRP Ledger network, developments in the legal case have significantly impacted the fluctuations in XRP's price.
In a noteworthy twist of events in July 2023, a U.S. judge determined that the sale of XRP tokens on exchanges did not qualify as investment contracts. This pivotal decision effectively brought a halt to one of the lengthiest and most contentious legal battles witnessed within the cryptocurrency realm.