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November 27, 2022
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Decision unfavorable to Ripple in the lawsuit filed by the SEC affects the XRP

The price of XRP has been dropping in recent days, partly due to an unfavorable decision by Ripple in the lawsuit filed by the SEC.

In fact, Judge Sarah Netburn rejected the company’s motion to reject the SEC’s allegations about the XRP transactions.

In December last year, the SEC filed a lawsuit against Ripple, the company that created the cryptocurrency of the same name in 2012.

At this stage, several legal battles are taking place, now in favor of Ripple and now in favor of the SEC, as in this specific case.

Therefore, although the price of XRP has gone up almost five times since the beginning of the year, news of the judge’s decision against Ripple has cast some pessimism, causing the price to drop.

That decision was made on May 19, the day of the crypto market crash. However, while the price of bitcoin that day fell from more than $ 40,000 to about $ 30,000 and then rose again to $ 40,000, the price of XRP fell from $ 1.60 to $ 1.00 and it only went up again to just over $ 1.1.

In other words, it appears that Judge Netburn’s decision prevented the price of XRP from recovering, as did BTC.

XRP, price optimism despite drop

The fact is that, although the action involves the company Ripple, it also involves the cryptocurrency XRP, since it also concerns its alleged security token nature. Therefore, negative news for Ripple from the progress of lawsuits is easily reflected in the price of XRP.

However, it should be remembered that, compared to a year ago, the price of XRP is still 450% higher, although it has not yet managed to break the historical record of $ 3.40 since January 2018, at the height of speculative bubble.

At this point, it seems impossible to determine whether the SEC’s lawsuit against Ripple could result in a conviction, acquittal or nothing, but given that the price of XRP has almost doubled from the level it was before the complaint, XRP holders are probably optimistic about this, on average. In addition, although XRP lost half its value in the days following the SEC’s complaint, it took less than two months to return to previous levels, which is another clear sign of community optimism.

Source: cryptonomist

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