The value of altcoin XRP is affected by the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC). Accordingly, the court’s decision that XRP is not a security marked an important turning point. After the decision, the XRP price soared. However, this increase in the value of XRP did not continue. It was short lived as the cryptocurrency faced a significant capital outflow.
Altcoin XRP’s market cap drop
As of August 19, the market cap of altcoin XRP stands at $24.66 billion. Accordingly, on July 14, just after the SEC lawsuit decision, the price of the altcoin had reached $42.89 billion. However, the significant loss of value after the decline draws attention. Accordingly, there are significant exits from altcoin XRP. These important outflows have reached $ 18.23 billion in a few weeks.
In the aforementioned lawsuit, the SEC accused Ripple of executing an unregistered security offering through the sale of altcoin XRP. The judge’s decision stated that XRP did not meet the criteria for classification as a security. He also emphasized that he partially acquitted Ripple of the SEC’s allegations. This news initially sparked enthusiasm among investors, pushing the value of altcoin XRP to new heights. Accordingly, XRP had increased by over 90% in a 24-hour period. It also hit a multi-month high above $0.80.
Short-term volatility and ongoing uncertainty
Unfortunately, this rise was short-lived. Altcoin XRP’s market cap has slumped as traders benefiting from the initial surge saw profits, general market volatility, and continued uncertainty over the cryptocurrency’s regulatory status.
During a recent market crash, altcoin XRP experienced a daily outflow of around $4 billion, coinciding with a broader market sell-off. Despite this market pessimism, XRP remained the most frequently traded altcoin in 2023.
The SEC’s appeal and the future look
The SEC has sought permission to challenge the determination that XRP is not a security. This demonstrates the SEC’s intention to appeal the decision. Given this ongoing regulatory uncertainty, the value of altcoin XRP is expected to remain volatile. However, some involved in the lawsuit believe that the appeal may not necessarily be a setback for XRP. At the time of this writing, XRP is trading at $0.51, losing about 20% weekly. Altcoin XRP faces a broader market correction and continued regulatory uncertainty.
Analysts suggest that a correction is expected and XRP should test new lows for the asset to potentially rise. Analysts also point out that support levels around $0.58 should be watched closely by investors. There are emphases that this point will be a breaking point. Despite the recent setbacks, speculation continues that XRP may enter a bullish trend, especially due to positive trading patterns, including the rare golden cross, which is a bullish indicator.
