XRP Price Drops 11% After SEC Appeals Ripple
The price of Ripple’s XRP has seen a sharp decline, losing more than 10% of its value in the past 24 hours. This comes after the U.S. Securities and Exchange Commission (SEC) filed a notice of appeal on October 2, opposing a previous ruling in Ripple’s favor.
With the altcoin’s negative sentiment growing, it could be headed back to its two-month low of $0.47. In this analysis, we explore why this is likely.
Ripple at the mercy of the SEC
In a recently filed “notice of appeal,” the SEC announced its intention to challenge the court’s decision in its case against Ripple. The appeal follows Judge Analisa Torres’ August 7 ruling, which imposed a $125 million fine on Ripple.
The court determined that the sales of XRP to institutional investors constituted securities transactions. However, she added that these sales were not fraudulent or malicious, with no evidence of fraud or financial harm. Judge Torres explained that while some XRP transactions are considered securities, XRP itself is not necessarily a security.
The SEC’s decision to appeal, compounded by the general market decline, has led to an increase in XRP sales. The altcoin is trading at $0.53, down 11% in the past 24 hours. Trading volume has increased by 5% over the same period.
