Amidst the extremely volatile session in the crypto market, Ripple’s XRP has recently caught the eye with its latest developments. The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) took a major turn today as the SEC appeals the judge’s decision. As a result, XRP price witnessed a sharp drop today, sparking fears of a significant sell-off. But could this just be an opportunity for buyers?
XRP institutional interest continues to rise despite SEC appeal
The U.S. Securities and Exchange Commission (SEC) recently filed an interim letter indicating that it is challenging the decision that XRP is not a security.
In documentation presented to Judge Analisa Torres, the SEC stated its intent to appeal part of its ruling related to Ripple’s sale of XRP tokens.
On July 14, Judge Torres ruled that XRP purchases by ordinary consumers on trading platforms were not securities because they followed a blind bidding process. Still, she concluded that direct sales of XRP to institutional entities provided those specific tokens as securities.
Despite this, data from Fineqia International, a leading figure in the crypto investment industry, shows that XRP-linked ETPs have seen increases of up to 57% within the year. Based on Fineqia’s numbers, assets related to XRP under their management are currently worth more than $76 million, up from $49 million, indicating rising institutional interest in the token.
Despite the current bullish vibe surrounding XRP’s performance, there is a cloud of unease among several market analysts. Some are genuinely concerned about the possible implications of a successful appeal by the SEC. If the regulatory body succeeds in overturning the favorable ruling, it could undo the progress XRP has made over the past month.
Such a setback could not only halt the upward trajectory, but could also lead to a significant fall in the market price.
XRP is trying to increase selling pressure
After enjoying a recovery rally near the EMA100 trendline, bears reversed the trend today by applying selling pressure following the SEC’s call. XRP price witnessed a spike in long liquidation and quickly dropped below the 23.6% Fib channel.
However, buyers are holding their positions by defending an immediate drop below the $0.61 support. At the time of writing, XRP price is trading at $0.631, down more than 1.8% in the past 24 hours.
If the price falls from its current position, it would indicate a shift to negative sentiment, with traders likely to pull out during minor corrections. This could increase the likelihood of the price falling below $0.59, consolidating the altcoin near the $0.53-$0.56 breakout zone.
Conversely, if the price moves past the 100-day EMA, it could be a signal that the bulls are rebounding. In such a scenario, the XRP price could rise to $0.728, a level that may be difficult to surpass.