Marketwide Crash Drives XRP’s Sharp Decline Alongside Altcoins

XRP dipped from $0.6990 on December 9 to $0.6010 early Monday amid Bitcoin's drop and a broader correction in the altcoin market.

Marketwide Crash Drives Xrp’s Sharp Decline Alongside Altcoins_65b970fa2a56c.webp

SEC vs Ripple Lawsuit Update

Ripple faced a significant downturn alongside other alternative cryptocurrencies in a widespread market crash, bringing attention back to the SEC v. Ripple lawsuit. Notably, attorney John Deaton, known for his pro-XRP stance, criticized former SEC Chair Jay Clayton for his remarks on the court’s decision. Clayton asserted that the initial issuance of XRP tokens qualified as a securities transaction during the capital raising phase, a point vehemently contested by Attorney Deaton.

In the aftermath of Bitcoin’s price decline, XRP experienced a notable drop in value over the past 24 hours, reflecting the broader correction across the cryptocurrency market. The ongoing SEC v. Ripple lawsuit has prompted discussions around the programmatic sales of XRP tokens by Ripple’s executives. Despite assertions by former SEC Chair Clayton that these sales constituted securities transactions, XRP holders and legal expert John Deaton maintain a contrary viewpoint.

Responding to Clayton’s statements, John Deaton expressed a desire to participate in a panel discussion with the former SEC Chair, emphasizing the unique nature of the SEC v. Ripple case. Deaton contends that there are no analogous cases, further adding to the complexity and significance of the legal arguments surrounding XRP and its classification.

Galaxy Digital’s CEO, Michael Novogratz, openly acknowledged the existence and influence of the XRP Army in a conversation with Real Vision’s Raoul Pal. Attorney Deaton supported Novogratz’s perspective, affirming the tangible impact of the XRP Army in contributing to Ripple’s partial victory. The affidavits submitted by XRP holders associated with the XRP Army played a pivotal role in Judge Torres’ decision, marking a significant milestone for the cross-border remittance firm.

Technical Analysis

In terms of XRP’s recent performance, the altcoin witnessed a notable decline from $0.6990 on December 9 to $0.6010 early on Monday, coinciding with a broader market correction triggered by Bitcoin’s crash. Having reached a local high of $0.7500 on November 13, XRP experienced a 20% downturn thereafter.

marketwide crash drives xrps sharp decline alongside altcoins 65b970fa2d34b

Analyzing the technical aspects, there is an anticipation of XRP attempting a recovery to $0.6820, representing the 50% Fibonacci level of the decline from the July 13 peak of $0.9413 to the August 17 low of $0.4237. Notably, XRP’s current trading position is above its 200-day Exponential Moving Average (EMA) at $0.5583, suggesting a potential recovery in response to positive developments in the SEC v. Ripple lawsuit.

Related: XRP Price Analysis: XRP Drops Again, Can This Support Hold?

As of the latest update, XRP is priced at $0.6248 on Binance, reflecting a nearly 6% decrease in the past 24 hours. The ongoing market fluctuations, coupled with the legal dynamics surrounding XRP, continue to shape the trajectory of this cryptocurrency.

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