XRP is losing nearly $5 billion of its market value in one month despite the positive news about Ripple

XRP has recorded phases of high price volatility in recent weeks as the token community monitors the progress of the ongoing cases between the Securities Commission (SEC) and Ripple.

In fact, XRP is under selling pressure, which has caused the cryptocurrency to lose $4.87 billion in market cap within a month. At the time of publication on December 7, the market cap of XRP was $19.04 billion, which represents a monthly drop of nearly 20% from the $23.91 billion recorded on November 11.

XRP 1-month market capitalization chart. Source: CoinMarketCap

XRP price analysis

Elsewhere, selling pressure affected the token’s price, which fell by 20% over the same period. As it stands, the cryptocurrency is trading as the seventh largest by market cap at $0.38.

XRP price chart for one month. Source: Coinphony

In particular, the focus was on the XRP bulls to push the asset’s price beyond the critical position at $0.40. The level is a major resistance level for XRP and will likely allow the coin to reach $0.50. Elsewhere, if the selling pressure persists, XRP faces a further possible correction to $0.35.

The impact of the Ripple case

Interestingly, XRP lost some of its capital despite Ripple recording slight gains in its battle with the SEC. Along these lines, legal analysts have speculated that the case may be decided in favor of the blockchain company amid speculation that the two parties will likely settle the matter.

Some of the notable wins include a decision by the Chief Justice to overturn the SEC’s attempt to withhold documents related to former division chief William Hinman. The disputed documents included a letter from Hinman saying that Ethereum (ETH) was a security.

In addition, Ripple gained support after the court recognized supportive submissions from companies using XRP technology, cryptocurrency industry groups, and asset holders.

It should be noted that during the slight gains, XRP witnessed a short-term price rally, partially challenging the bearish momentum of the overall crypto market.

Overall, the month-long sell-off in XRP can be attributed to the general cryptocurrency market price correction that has led most assets to consolidate in an attempt to find a bottom for another rally. In fact, the token is still facing the effects of prevailing macroeconomic factors such as rising inflation along with the fallout from the collapse of the FTX cryptocurrency exchange.

What’s next for XRP?

Meanwhile, the focus of the XRP community is on the SEC case as the matter draws to a close. The ruling will help determine which assets can be classified as securities under US law. Right now, both parties have submitted their final requests.

Above all, the decline is likely to affect the price of XRP, as many technical analyzes point to bullish expectations for the digital currency. As reported by Coinphony, based on a machine learning algorithm, XRP is likely to be trading at $0.427 on December 31, 2022.

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XRP lost nearly $5 billion in market cap in one month even though positive news about the ripple operation appeared first on Coinphony.

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