As a result of the most recent legal measures taken by the SEC, supporters of XRP have seen a striking contrast in the price activity of the cryptocurrency.
In the Ripple litigation that was resolved a few months ago, the United States Securities and Exchange Commission (SEC) demonstrated on Thursday that it would appeal positive verdicts. When Friday rolled around, it had formally moved forward with the plan by filing official petitions to the United States appeal court.
The first notice, which was sent on Thursday, caused shockwaves to go throughout the XRP market. It encouraged a lot of people to sell off their XRP tokens, which resulted in the price of XRP falling significantly.
When the Securities and Exchange Commission (SEC) first launched a lawsuit against Ripple in December of 2020, this big sell-off also took place. However, in comparison to other instances, the most recent price decline in XRP that was brought about by the SEC's legal action has been less severe this time around.
By the time the news of the SEC's request to appeal was made public on October 2, XRP had already reached an intraday high of $0.6058. By the third of October, the price of XRP had dropped to $0.5101, which is equivalent to a 15.79% decrease.
Interestingly, by the time October 4 rolled around, the price of XRP had already recovered from Thursday's drop, even after the Securities and Exchange Commission (SEC) had filed its appeal against Ripple in the legal system of the Second Circuit. XRP is now trading at $0.5323, representing a gain of 1.67% over the course of the previous day.
On the other hand, the price spike that occurred in 2020 was far more severe and lasted for a number of days. Additionally, the price of XRP was $0.5678 on December 20 of that year. But by the 23rd of December, once the news of the lawsuit became public, the price of XRP had dropped to $0.2214, representing a significant decrease of 61%.
A growing number of exchanges started delisting XRP, which caused the price decline to become even more severe. XRP has fallen to $0.1748 on the 29th of December, which was about 70 percent lower than its previous price of $0.5678. At this point, the value of XRP had dropped to its lowest point before it entered a period of recovery.
In the face of the most recent legal action, XRP has shown remarkable endurance, which has generated confidence in its supporters on the possibility that it may shortly rise above $6. A number of people, including market expert Bobby A, are of this opinion. He issued a warning in a commentary that the appeal notice issued by the SEC is a "sell trap," and he predicted that the price of XRP would hit $4.23.
Bobby A maintains that the macro charts continue to be optimistic and contends that investors often miss chances because they engage in behavior that involves selling the news. In a tweet, he said that the signs for XRP continue to point to an imminent upward trend.
While this is going on, a study has shown that the price of XRP might possibly reach $6 in the very near future. In the wake of the lawsuit, which occurred in December 2020, the price of XRP dropped to $0.17. However, by April 2021, it had increased by 1,021%, reaching $1.96.
Taking into account a comparable percentage rise on XRP's recent low of $0.5101 in the midst of the appeal notice, it is possible that throughout the month of January, it might climb up to $5.72, which is nearly $6. On the other hand, the possibility of history being repeated with the same events remains questionable.
