Even before the sharp fall of the market on May 19, XRP was already in a delicate position due to the conflict between Ripple and SEC
The ongoing legal battle between the SEC and Ripple has been a kind of roller coaster for XRP traders and holders. There is a lot of uncertainty in the price of altcoin as a result of this legal disaster. The SEC has argued since the start of this enforcement action that XRP is a security.
The impact of the recent updates is that the price of the cryptocurrency was at $ 1.45 at the time of this writing, but has dropped sharply along with the entire cryptocurrency market in the past 24 hours, coming to be traded for around 80 cents. There has been an increase of almost 50% in the volume of trade in the last 24 hours.
Social Volume of XRP || Source: Lunarcrush
Social volume peaked several times after updates from the SEC vs Ripple audience. It dropped to 16,258 based on the chart above, following the SEC’s argument that XRP holders are, in fact, XRP investors. This is similar to an attack on the XRP HODLers portfolio, given the short-term impact on ROI (ironically, the SEC’s motto is “protect investors”).
XRP short-term ROI || Source: Messari
Based on the chart above, XRP traders have gained less than 15% ROI in the last 30 days and this makes it less profitable than most altcoins in the top 10. Similarly, for HODLers who accumulated when the price was at $ 1.9 level, they are currently unprofitable. Volatility almost dropped, with some peaks after the audience updates. At the same time, the correlation of XRP with BTC and ETH is above 80%. This helped the altcoin price to stay at the $ 1.6 level against selling pressure on spot exchanges.
In its most recent request, the SEC’s response makes clear the hostile stance towards XRP traders. Updates to lawsuits have in no way safeguarded the interests of cryptocurrency traders. Short-term ROI is expected to drop further after updates.
The enforcement action brought by the SEC may never have been intended to protect or negatively impact the price of XRP, however, at a time when almost all mid-cap and small cap altcoins are recovering this summer (or at least were , until today’s strong market crash), the XRP rangebound price action is largely the result of the SEC lawsuit against Ripple.
XRP traders responded to this action, due to the consistent demand on spot exchanges and the market capitalization was above $ 51 billiona until the general market crash, altcoin is in 7th position and there are currently no signs of falling below 10 first. However, following Bitcoin’s recent moves, XRP may see a bear market very soon.