Because traders are looking to profit from price changes rather than adopting a buy-and-hold strategy, the general market bearishness has put pressure on tokens that could have otherwise been supported by favourable fundamentals.
According to data, XRP, one of the largest coins in the world by market capitalization, has lost almost all of its gains after Ripple Labs’ historic court victory over the U.S. Securities and Exchange Commission (SEC) in July.
XRP traded at 50 cents on Wednesday, down 14% from the previous week and 30% from the previous 30 days. According to price-chart data, the tokens reached an annual high of 83 cents on July 20, but on Wednesday, prices were back at their same levels before the SEC decision.
The SEC filed a lawsuit against Ripple in 2020 over claims that the company had sold unregistered securities. Ripple has long kept a boundary between XRP, the coin that drives some of its businesses, and the XRP Ledger network. However, every development in the case affects the price of XRP.
But in July 2023, a U.S. judge put a halt to one of the protracted and contentious legal disputes in the cryptocurrency market by ruling that the selling of XRP tokens on exchanges did not constitute investment contracts.