Recent twists in the Ripple versus SEC lawsuit have opened the door to some exciting prospects, suggesting that this long-standing legal battle might finally be reaching a conclusion.
However, in an unexpected turn of events, XRP’s price has not celebrated these developments, instead experiencing a significant downturn.
XRP’s Price Decline
In the last day, XRP’s value dropped by over 6%, and the seven-day outlook is even grimmer, with a decrease of 24%.
This decline is surprising, especially given the positive news emerging from the Ripple-SEC dispute, including the U.S. SEC’s decision to shift Jorge Tenreiro, the Chief Litigation Counsel, into the agency’s IT division.
This reassignment is being viewed as a step in the right direction for the lawsuit, especially since Tenreiro once led the SEC’s crypto division, playing a key role in the Ripple case and others like it.
Accompanying this shift, more than 50 attorneys at the SEC have also been reassigned, which has led cryptocurrency experts to speculate that an announcement regarding a resolution could be on the horizon.
Speculations and Market Sentiment
Moreover, the SEC has signaled a reduced focus on cryptocurrency enforcement by scaling back its specialized unit dedicated to this sector.
Such moves strongly suggest that the agency might withdraw from the Ripple case and possibly other related lawsuits initiated under the previous administration.
Although these signs are promising for XRP—especially considering its past challenges tied to the drawn-out legal saga—the asset’s failure to react positively has created concern among investors.
One possible explanation for the slump in XRP’s price, despite seemingly favorable updates regarding Ripple’s case, is the overall bearish sentiment prevailing in the cryptocurrency market.
Bitcoin, for example, has struggled to hold significant support levels, which could be contributing to the downward trends seen in XRP and other altcoins.
Future Predictions
Some analysts also speculate that XRP’s price may have already priced in a favorable outcome from the Ripple litigation in anticipation of Donald Trump’s potential election victory.
There’s speculation that the SEC could reconsider its appeal against Ripple, particularly given Trump’s favorable stance toward cryptocurrencies and his recent appointment of Paul Atkins to the SEC’s leadership.
Despite the current struggles of XRP and its inability to gain traction following positive developments in its legal timeline, many in the crypto community remain hopeful.
Analysts suggest that if historical patterns hold true, XRP could be gearing up for a significant rally, with the potential to soar to as high as $8 in the near future.
Currently, XRP is trading around $2.29, reflecting a drop of nearly 7% in the past 24 hours.
Source: Bitcoinist
