The mid-July surge in XRP prices came crashing down after news emerged about a possible delay in the Ripple vs. SEC lawsuit settlement.
Over a two-week period in July, XRP surged by more than 50%, reaching its highest point since early April. Several factors contributed to this bullish run, most notably the anniversary of a crucial court ruling. On July 13th, 2023, a judge declared XRP a non-security, a decision that fueled optimism within the community regarding an impending resolution to the ongoing SEC lawsuit.
Speculation Fueled by Closed-Door SEC Meeting
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A recently posted closed-door meeting on the SEC’s website further bolstered the optimism. Market participants interpreted this as a potential signal of progress in settlement talks between the SEC and Ripple. The core sticking point in the lawsuit remains the level of penalties for unregistered sales by Ripple-affiliated entities. The SEC is seeking a hefty fine, while Ripple maintains its stance of being willing to pay only $10 million.
XRP Price Crashes as Settlement Talk Fizzles
Crypto enthusiasts and XRP holders were eagerly awaiting news on the lawsuit’s progress when the SEC website update revealed the cancellation of the very meeting that had sparked optimism. This sudden shift in sentiment triggered a brutal sell-off, with prices plummeting by more than 8%.
Volatility Remains in the Crypto Market
The dramatic price swing underscores the inherent volatility of the cryptocurrency market. XRP’s surge was an effect speculation, and its subsequent fall stemmed from the absence of concrete news. CoinGlass data reveals that over $5.6 million worth of XRP positions got liquidated during this rollercoaster ride, with long positions accounting for over $3.6 million of that total.
The Future of XRP Hinges on Lawsuit Resolution
The near-term outlook for XRP remains uncertain, with its price heavily dependent on developments in the ongoing lawsuit. A swift resolution could reignite bullish momentum, while a protracted legal battle could lead to continued price stagnation or even further decline.
