The price of XRP plummeted to $0.2138 at Binance, as three key factors push cryptomoeda down.
3 reasons for the price of XRP to continue to fall after losing 63% in value in four daysMARKET MARKET ANALYSIS
The price of the XRP fell dramatically to less than US$0.3 on December 24, reaching US$0.2138 at Binance. Sales pressure on the XRP intensified after the high-profile U.S. SEC lawsuit against Ripple.
There are three main factors behind the sharp decline in XRP prices, namely the SEC case, which is likely to close capital by exchanges and worsen market sentiment.
Daily XRP / USD (Coinbase) candle chart. Source: TradingView.com
Ripple process is worse than EOS and Kik
This is not the first high-profile process or agreement between the SEC and a blockchain company or a token.
EOS and Kik reached a settlement with the SEC and, according to Adam Cochran of Cinnemhain Ventures, were considered securities violations.
Regarding XRP, Cochran stressed that the SEC is claiming that cryptomoeda is still in breach of securities law. He said:
„Unlike Kin and EOS, where the SEC claimed that the securities violations were only in the sale, the SEC here claims that the $XRP *FORE* violates current securities law. That means they believe it is currently a bond, hence the exchange’s reactions. ”
Several lawyers similarly observed that Ripple might have difficulty in pleading ignorance due to the documents cited in the case. As a result, the case becomes more complex for Ripple to deal with, considering that CEO Brad Garlinghouse said he would fight him. Cochran said:
„They have several points of evidence of centralisation, recognition of securities issues and written sales practices. There is no room to plead ignorance / stupidity here. They have personally named the executives as responsible, which the SEC does when they attempt a deadly shot. This is much more common in fraud action than in general securities action. ”
Exchange stops trading XRP
Cochran also said that some sources suggested that Coinbase had discussions with the board about closing the XRP.
The exchanges do not yet need to remove the XRP. If it is declared a title by the court, however, the lawyers said the exchanges could face several risks and could be forced to slide the token preventively. Cochran wrote:
„Sources suggesting that Coinbase has already discussed with the board the withdrawal of $XRP. It seems that two potential plans are forming, one that puts the closure of the capital on Friday. It is not clear what Coinbase products will impact, but probably Coinbase and Pro. ”
Social media already condemn
Data from Santiment show that the view of the social media around Ripple has worsened significantly.
The hottest topics of the day in the cryptoesphere. Source: Santiment
According to Santiment, discussions in social networks around cryptography are still dominated by the XRP and the SEC process. Santiment analysts said:
„The most discussed topics today are dominated by $XRP and #Ripple, as the #SEC accuses the company of selling securities.
Daily sentiment score vs. tweet volume. Source: The Tie
The Tie data also shows that the daily sentiment score fell to the second lowest level of all time this week, while the tweet volume reached record levels.