XRP Price Plummets, Falls to Two-Month Low

The value of Ripple’s XRP token has plummeted, losing more than 10% in the past 24 hours. The decline comes after the US Securities and Exchange Commission (SEC) filed an appeal on October 2, challenging a previous ruling in Ripple’s favor.

Negative sentiment around the altcoin is growing, putting it on track to drop to a two-month low of around $0.47. This analysis explains why this scenario is likely.

Ripple Faces Challenge from SEC

In a recent notice of appeal, the SEC expressed its intention to appeal the ruling in its case against Ripple. The move follows Judge Analisa Torres’ decision on August 7 to impose a $125 million fine on Ripple.

The court found that Ripple’s XRP transactions with institutional investors were securities in nature, but there was no evidence of fraud or malice. Judge Torres also emphasized that while some XRP transactions may be considered securities, XRP itself is not a security.

The SEC’s appeal decision, combined with the general market decline, has fueled a sell-off in XRP. The altcoin is currently trading at $0.53, down 11% over the past 24 hours. Its trading volume has also increased by 5% over that time.