Popular XRP community member “Common Sense Crypto” identifies the major reason behind XRP’s collapse in the daily charts.
The XRP community was left in disappointment after the coin recorded a dramatic plunge yesterday. Data from CoinMarketCap shows that the XRP price fell below the $0.6 threshold to a 24-hour low of $0.5869.
Notably, XRP’s price crashed from $0.6215 to $0.5866 within three hours, reflecting a decline of 5.61%. However, the dip was short-lived, as the seventh-largest cryptocurrency by market cap rebounded above the $0.6 price level.
Reason Behind XRP Price Decline
Reacting, prominent community member Common Sense Crypto attributed the price decline to the outcome of yesterday’s closed-door meeting at the SEC’s headquarters.
It bears mentioning that the price of XRP spiked to around $0.64, following speculations about a potential settlement in the SEC v. Ripple lawsuit. Several XRP community members speculated that the SEC could agree to settle with Ripple at its closed-door meeting slated for July 25, 2024, at 2 PM (ET).
This speculation was fueled by the meeting’s agenda, which revolves around the settlement of administrative proceedings and injunctive actions. However, the meeting did not bring about the settlement of the SEC v. Ripple lawsuit as many anticipated. Consequently, XRP witnessed a sell-off, according to Common Sense Crypto.
There is the sell off just like every month when these meeting turn out to be nothing! $xrp pic.twitter.com/OLhJuRzqac
— Common Sense Crypto (@TheCSCrypto) July 25, 2024
The community member stated that a pattern of XRP sell-off is often seen when the outcome of the SEC closed-door meetings does not produce positive results.
The comment suggests that most investors usually lose confidence and decide to sell off their XRP holdings whenever SEC meetings do not yield valuable outcomes, especially a settlement.
Investors Anticipate Resolution of SEC v. Ripple Lawsuit
Notably, investors are eagerly anticipating the final resolution of the Ripple lawsuit. It is common knowledge that the lawsuit has had a bearish impact on XRP’s price since its introduction in December 2020.
For instance, XRP failed to register a new all-time high in the 2020/2021 market cycle like most of its peers did. XRP’s previous ATH record of $3.84 was set on January 4, 2018, over six years ago.
With investors anticipating the lawsuit’s resolution, XRP’s price usually spikes whenever there are rumors of a potential settlement and declines when these rumors do not materialize. In the meantime, XRP is down 1.02% over the past 24 hours to $0.6067.
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