Over the past few weeks, XRP has erased all gains it gathered due to Ripple Labs’ partial victory in its lawsuit with the U.S. Securities and Exchange Commission (SEC), leading to speculations that the SEC-induced momentum may be over.
The cryptocurrency has lost more than 44% of its gains since the landmark ruling and continued in instability amid a massive sell-off and weak investors’ confidence.
Judge Analisa Torres’ ruling that retail XRP sales did not constitute securities spurred the asset to skyrocket from its trading price of around $0.47 to over $0.82.
With the upward movement, XRP briefly surpassed BNB as the fourth-largest cryptocurrency by market cap before settling in as the fifth-largest and has remained so since then. The asset continued to post double-digit gains as U.S. crypto exchanges, which previously delisted the token due to the legal battle, relisted it in droves.
Furthermore, XRP began to see substantial institutional inflows as investors started to acquire the asset following increased interest in its potential. At some point, the XRP Ledger gained popularity for its fast transaction speed and low cost compared to Bitcoin, Ethereum, and Cardano.
However, the euphoria has died down in recent weeks as XRP value has tumbled to levels seen before Ripple’s partial win against the SEC. Last week, the crypto asset led the altcoin decline during the market bloodbath, crashing by roughly 20% within seven days.
CryptoPotato reported that a recent sell-off by XRP holders has caused a major shift in the coin’s dynamics. This has created uncertainty and technical hurdles that threaten to let XRP’s price decline further, challenging spectators and long-term holders.
Amid the uncertainty and impending volatility, the SEC has also moved to challenge Judge Torres’ decision on the sale of XRP. The judge recently granted the agency’s request to file a motion for an interlocutory appeal against Ripple, despite opposition from the company.
With XRP’s track record of making big price moves whenever significant events occur in the SEC vs. Ripple Labs lawsuit, the asset’s next direction remains uncertain.
While investors and market participants stay wide-eyed to see if XRP’s price will recover, it appears the SEC-induced momentum has come to an end.
The post SEC Momentum Over? XRP Erases All Gains Charted After Ripple’s Landmark Court Victory appeared first on CryptoPotato.
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