XRP has been criticized in recent days by news that the US Securities and Exchange Commission (SEC) will sue the company Ripple. The regulator is suing the financial technology company for selling XRP.
Ripple has denied the allegations. Such as reported by NewsBTC, Ripple’s lawyers wrote:
“The SEC is completely mistaken on the facts and the law, and we are confident that we will ultimately prevail over a neutral fact-finder. XRP, the third largest virtual currency with billions of dollars in trade per day, is a currency such as the SEC has considered Bitcoin and Ether, and is not an investment contract. This case does not look like the initial mint offering cases that the SEC has previously brought and made the Howey standard unrecognizable. “
Despite these attempts to stop the SEC, XRP has continued to sell. The crypto asset is down 40% in the last 24 hours alone as exchanges and prominent funds / trading desks gain support for the mint.
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XRP continues to decline
XRP drops lower as the crypto market seemingly continues to bleed in relation to the SEC news.
The leading cryptocurrency, which has fallen below Tether’s USDT when it comes to market cap, is down 40% in the past 24 hours. The mint has hit lows not seen in many months, with a market cap of $ 11 billion.
Analysts think XRP could fall even lower due to the lack of bullish catalysts. Messari CEO Ryan Selkis said:
“XRP holders are totally f * cked. I would expect $ 0.10 in mid-January. I think the company will get away with the “securities” element and it will be a struggle, but: + ODL is dead + liquidity partners dead + distribution schemes dead. “
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Exchanges and funds attract support
This decline is because stock exchanges, trading desks and funds are starting to draw support for the mint.
The Block reported today that trading desks have stopped working with XRP on the news of the SEC ruling:
Jump Trading, the secretive Chicago high-frequency trader, and Mike Novogratz’s Galaxy Digital have stopped making markets in XRP after the Securities and Exchange Commission filed a lawsuit against Ripple, sources said.
The lack of marketing could result in even stronger moves lower as liquidity dissipates, preventing sellers from receiving their orders without moving the market.
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Featured Image from Shutterstock Price tags: xrpusd, xrpbtc, xrp Charts from TradingView.com XRP Crashes To $0.26 as SEC-Triggered Sell Off Swells