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XRP’s current price hovers around $0.60 despite uncertainty surrounding the SEC appeal and market volatility.
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Former Bitfury CEO compares XRP price fluctuations to Google early stock volatility.
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The SEC’s possible appeal could have a significant impact on XRP’s prices in the coming weeks.
XRP, Ripple’s digital asset is experiencing price fluctuations as the possibility of an appeal by the Securities and Exchange Commission in the United States (SEC) looms.
The cryptocurrency is currently trading at $0.60 and reflects the broader crypto market concerns. Price volatility is a major concern. Former Bitfury Chief Executive Brian Brooks compared XRP price swings with the early volatility of Google’s stock, but stressed that such movements do not define an asset’s value over time.
XRP’s price drops amid market volatility
In the last 24 hours, XRP fell by 0.37%, to $0.5981. This is a slight reversal of the previous day’s 1.14% increase. This decline mirrors that of the broader crypto-market, which saw a 0.48% drop, bringing the market cap total to $2.097 billion. These price movements show the volatility of the crypto market, with XRP struggling just to stay above $0.60.
Brooks argued, in a speech at The Aspen Institute that focusing on the short-term price fluctuations of cryptocurrencies such as XRP misses their point. He believes that their true value is in their ability to disrupt centralized banking systems.
Brooks compared XRP’s current price fluctuations with Google’s early stock fluctuation, suggesting that such changes do not matter when considering the asset’s potential. He believes that cryptocurrencies, like internet stocks, are investments in the future decentralized networks and that their volatility shouldn’t be the main focus.
Uncertainty about SEC appeals adds to XRP’s challenges
Further uncertainty is created by the SEC’s possible appeal of recent Ripple case decisions. The SEC must decide by early October whether it will appeal the final judgment of Judge Analisa Torres, which was issued on August 7. The SEC had requested a $2 billion fine, but the $125 million penalty that was imposed on Ripple was less. The Judge also denied the SEC’s request to enjoin XRP sales by Ripple to institutional investors. This could have impacted Ripple’s U.S. growth plans.
Stuart Alderoty expressed doubts about an appeal. He said that while a rational actor could move on, SEC’s behavior in past crypto cases suggests it might not. The ongoing investigation by Office of Inspector General into possible crypto-conflicts of interest within SEC further complicates things. This investigation focuses primarily on William Hinman, a former SEC director who played a major role in the Ripple Case. Hinman has been accused of bias and conflict of interest, with allegations that he received millions of dollars from his former employer when he was at the SEC.
The SEC’s decision on XRP will determine its future price.
If the SEC decides to not appeal, XRP could reach the high of $0.9327 in July 2023 if its price trend continues. If an appeal is filed however, the price may fall to $0.40, leaving XRP’s position in a precarious situation. Investors should be aware of the SEC’s next action, as it is likely to have a significant effect on XRP’s market performance.
The asset’s position is above the 50-day EMA, at $0.5878. This indicates continued bullish momentum. XRP is in a neutral area with a 14 day RSI of 56.63. This indicates that it is neither overbought or oversold. This could allow for a potential upward movement in the event that positive news is released regarding the SEC situation.
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