Amid the extremely volatile session in the crypto market, Ripple’s XRP has recently taken the spotlight with the latest developments. The ongoing legal tussle between Ripple Labs and the US Securities and Exchange Commission (SEC) has taken a significant turn today as the SEC moves to appeal the judge’s decision. As a result, the XRP price witnessed a sharp drop today, sparking fears of a significant selloff. But could this just be an opportunity for buyers?
XRP’s Institutional Interest Continues To Rise Despite SEC’s Appeal
The U.S. Securities and Exchange Commission (SEC) recently submitted an interlocutory brief indicating its desire to challenge the decision that XRP is not a security.
In documentation presented to Judge Analisa Torres, the SEC voiced its intent to appeal a segment of her verdict concerning Ripple’s sales of XRP tokens.
On July 14, Judge Torres determined that XRP purchases by general consumers on trading platforms weren’t securities due to their adherence to a blind bid procedure. Yet, she concluded that direct sales of XRP to institutional entities rendered those specific tokens as securities.
However, despite this, data sourced from Fineqia International, a leading figure in the crypto investment sector, shows that XRP-linked ETPs have experienced surges of up to 57% within the year. Based on Fineqia’s figures, the assets related to XRP under their management are presently worth over $76 million, up from $49 million, highlighting a surging institutional curiosity in the token.
Despite the current bullish vibe around XRP’s performance, a cloud of unease hangs among several market analysts. Some are genuinely concerned about the potential implications of a successful appeal by the SEC. If the regulatory body does manage to overturn the favorable ruling, it could wipe out the progress XRP has made over the past month.
Such a setback might not just halt the upward trajectory but could trigger a considerable plunge in its market price.
XRP Attempts To Intensify Selling Pressure
After enjoying a recovery rally near the EMA100 trend line, bears changed the trend today by bringing selling pressure following SEC’s appeal. XRP price witnessed a spike in long liquidation and dropped below the 23.6% Fib channel quickly.
However, buyers are maintaining their positions by defending an immediate decline below the support of $0.61. As of writing, XRP price trades at $0.631, declining over 1.8% in the last 24 hours.
If the price dips from its current position, it would indicate a shift towards a negative sentiment, with traders likely offloading during minor corrections. This could increase the likelihood of the price dropping below the $0.59 mark, consolidating the altcoin near the breakout zone of $0.53-$0.56.
Conversely, if the price pushes past the 100-day EMA, it might signal the bulls are making a resurgence. In such a scenario, the XRP price could climb to $0.728, a level that might be challenging to surpass.
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