Ripple XRP’s Price May Continue to Fall After 64 Loss

XRP’s price keeps diving on Binance because of three key factors that keep the cryptocurrency from recovering. As of writing, XRP is valued at $0.2677 after dropping to below $0.3 on December 24.

The pressure to sell XRP has been getting more intense since the announcement of the high-profile lawsuit filed by the US Securities and Exchange Commission against Ripple and its two executives, Garlinghouse and Larsen.

According to analyses, three major factors heavily affected the price of XRP. Aside from the SEC’s infamous lawsuit, the delisting by exchanges and the negative light at which the public sees the currency is also preventing it from recovering.

An investor says that this lawsuit is worse than EOS and Kik. Historically, this isn’t the first time the SEC filed a high-profile lawsuit against a blockchain firm or token. EOS and Kik have previously settled with the SEC, and according to Cinnemhain Ventures’ Adam Cochran, the lawsuits were considered as security violations only at the point of sale. Unlike these two, SEC alleges that XRP is still violating the securities law. Cochran interpreted this as the SEC still believing that the XRP is still a security.

Numerous lawyers also noted that Ripple might have a hard time pleading ignorance because of the documents the SEC cited in their lawsuit. This makes the lawsuit more complex for the company to deal with, regardless of the CEO Brad Garlinghouse’s willingness to fight it out.

Aside from these, Cochran also mentioned that some sources suggested that Coinbase had discussions with counsel about delisting XRP. However, exchanges do not have to delist the crypto token yet.  Although, if the token is declared as a security, lawyers say that the exchanges would have to delist the token preemptively, or they will be facing various risks.

Cochran had this to say regarding the matter:

“Sources [are] suggesting that Coinbase has already had discussions with counsel about the delisting of $XRP. It seems two potential plans are forming, one which puts the delisting on Friday. Unclear which Coinbase products it will impact but most likely Coinbase and Pro.”

Another possible reason for this is the negative social media sentiments around Ripple, causing it to decline further. According to data from Santiments, discussions on social media about cryptocurrencies are dominated by XRP and the current lawsuit from the SEC. Data from The Tie also shows that XRP scored their second-lowest level ever, while the volume of tweets spiked to new highs.

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Jamie West

Jamie is an XRP veteran & keeps his finger on the pulse when it comes to all things crypto.

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