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Eddy S.
The crypto market was recently shaken by a significant drop in the price of XRP, Ripple’s cryptocurrency. Several factors contributed to this drop, including legal developments and increased geopolitical tensions. However, the situation risks getting worse if nothing is done!
Crypto: Ripple (XRP) collapses after this SEC maneuver
One of the main factors behind this decline is the SEC’s appeal in the lawsuit against Ripple. The SEC accuses Ripple of selling unregistered securities in the form of XRP. While Ripple was ordered to pay a fine of $125 million, the SEC’s decision to appeal has reignited uncertainties among crypto investors. This situation led to a massive sell-off in XRP, causing its price to fall from $0.63 to $0.51, a drop of more than 15%. The final decision in this case is expected on October 7, 2024.
In addition to legal issues, geopolitical tensions have also played a crucial role in the decline in the price of ripple. International conflicts and global economic uncertainties have pushed investors to turn to safer assets, thus abandoning cryptos. This trend has been observed not only for XRP, but also for other major cryptocurrencies.
Another factor contributing to the decline in the price of XRP is its supply inflation. Ripple regularly releases large amounts of XRP from its escrow accounts, increasing the total supply of the crypto. This increase in supply, combined with stagnant or declining demand, has put downward pressure on the price of XRP.
Future prospects for XRP
Despite these challenges, some analysts remain optimistic about the future of XRP. They believe that if Ripple can resolve its legal issues and stabilize the supply of XRP, the crypto could regain its value. Additionally, the growing adoption of blockchain-based payment solutions could also work in XRP’s favor in the long term.
The recent decline in the price of XRP is the result of a combination of legal, geopolitical, and economic factors. Crypto investors should remain vigilant and closely monitor future developments to make informed decisions.
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Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.
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