XRP has plummeted by over 15% as it breaks below the $0.50 mark in a downturn triggered by the convergence of several factors.
XRP has finally retraced to the levels before the favorable ruling in the Ripple case on July 13. This bearish turn of events occurred in the wake of a recent 15% collapse triggered by several factors, including developments in the lawsuit and market volatility.
XRP Breaks Below $0.50
Despite the correction immediately after the $0.9380 high on July 13, XRP retained some gains from the ruling-induced rally.
After losing the $0.80 mark later in July, XRP leveraged crucial support levels at $0.70. However, the asset finally lost the $0.70 level on August 4 after three consecutive days of persistent declines.
XRP had been holding onto $0.60 as its last line of defense since August 4. This defense has now succumbed to the bears. A 14% collapse yesterday was the final blow, as XRP broke below $0.50 for the first time in over a month.
The retracement has spilled into today, with XRP down 15.6% over the past 24 hours. This persistent downturn results from massive selling pressure triggered by apprehensions surrounding the Ripple v. SEC legal tussle and prevailing bearishness in the broader market.
SEC’s Motion Granted
In a recent development in the SEC vs. Ripple case, Judge Analisa Torres granted the SEC’s request to file a motion for leave to file an interlocutory appeal.
Recall that, on August 9, the SEC filed a motion seeking permission to request an interlocutory appeal on Judge Torres’ ruling on Ripple’s programmatic sales of XRP and other distributions.
Accordingly, Ripple responded to the request on August 16, asking Judge Torres to dismiss it. The recent approval means the SEC can now request to file an interlocutory appeal. This development has compounded the XRP collapse.
Overall Crypto Market Falls
Another factor that triggered XRP’s recent collapse below $0.50 is the state of the broader crypto market. The broader market collapsed yesterday, leading to $1 billion in liquidations in 24 hours. Bitcoin saw its largest liquidation since June 2022.
This collapse in the crypto market coincided with a rapid surge in US bond yields triggered by the latest FOMC minutes release. The minutes revealed details of the July meeting, signaling the likelihood of another interest rate hike.
These factors catalyzed the recent crypto market downturn. In addition, the market collapse came on the back of a filing from Chinese real estate giant Evergrande seeking Chapter 15 bankruptcy protection. The broader crypto market’s downturn has exacerbated XRP’s woes.
In addition to these factors, pro-XRP attorney Jeremy Hogan called attention to a trend that might be contributing to XRP’s fall. Hogan cited a story on Yahoo! about the recent approval handed to the SEC by Judge Torres.
“Are misleading headlines responsible for XRP crashing more than other crypto?” attorney Hogan inquired in a post on X today.
Are misleading headlines responsible for XRP crashing more than other crypto?
OR, are misleading headlines responsible for XRP crashing more than other crypto?
— Jeremy Hogan (@attorneyjeremy1) August 18, 2023
Notably, while the broader market has collapsed, XRP has shed more of its value than most assets. XRP’s 15.6% drop in the last 24 hours makes it the third biggest loser among the largest 100 assets.
Despite not kickstarting XRP’s collapse, FUD-inducing headlines can compound investor angst. This pattern could trigger more selling pressure and contribute to the drop in price.
XRP is trading for $0.4993 at the reporting time, down 19% over the past week. The asset now seeks to reclaim the $0.50 territory and solidify a strong position above the zone. This would hedge against further drops.