The entire crypto market is full of interesting events, but XRP has become the main newsmaker today. The third largest cryptocurrency has experienced a sharp depreciation. And again it became the fourth in capitalization, losing the third place to Tether.
Yesterday, the price of the XRP token from Ripple exceeded the $ 0.70 mark. After which the price began to decline sharply, over the past day it fell by more than 40%. This led to massive liquidations of the positions of crypto exchange users. Thus, crypto traders lost more than $ 508 million per day.
Against this backdrop, traders afraid that XRP can pull Bitcoin along with it. The rate of the first cryptocurrency really dropped a little.
Cryptocurrency traders are speculating that the XRP price will dip even lower before heading higher again. Traders expect the XRP price to change direction soon and eventually attempt to break above the $ 0.50 area.
According to many analysts, one of the reasons for the decline in the XRP rate was the SEC lawsuit, which puts the activities of Ripple at risk. The SEC has filed charges of raising $ 1.3 billion by selling unregistered securities in the guise of XRP tokens.
The American regulator asks the court not only to ban further transactions with XRP, but also to return the profits from the sale of cryptocurrency and pay a fine.
The decision on the future fate of the company will depend on the decision of the question, is the Ripple cryptocurrency a means of payment or is it an investment instrument purchased by investors for the purpose of speculation and profit from the growth in value? The Ripple website has already published a statement in which the company doesn’t admit the SEC charges and plans to defend its position in court.