The market’s overall pessimistic outlook is influencing tokens that would typically be propelled by strong fundamental forces.
Profit-taking is occurring as a result of traders’ preference to capitalize on price swings over adopting a long-term investing plan, which is causing prices to continue to fluctuate.
After Ripple Labs won a substantial court victory against the United States Securities and Exchange Commission (SEC) in July, there is evidence to suggest that one of the most important tokens in terms of market capitalization, XRP, has given up virtually all of its prior gains.
XRP is one of the major tokens in terms of market capitalization.
On Wednesday, the price of XRP was trading at 50 cents, representing a decrease of 14% over the previous week and a drop of 30% over the previous 30 days.
On July 20, the tokens’ price reached an all-time high of 83 cents, as indicated by the data from the price chart. However, the prices have since reverted to the levels observed prior to the SEC’s verdict. This occurred on Wednesday.
The Securities and Exchange Commission (SEC) initiated legal action against Ripple in the year 2020, stating that the business had marketed unregistered securities.
Throughout its history, Ripple has upheld a clear separation between itself and XRP, the coin employed for transactions involving its products and the XRP Ledger network. Despite this, the value of XRP responded in a material way to any new developments in the court case.
One of the crypto market’s longest and most controversial legal disputes came to a temporary halt in July 2023 when a court in the United States determined that the selling of XRP tokens on exchanges did not qualify as investment contracts.
This brought an end to one of the market’s most contentious legal battles. Even though this judgment has been rendered, the appeals pertaining to the case are currently under consideration.