XRP is down over 11% in the last 24 hours after the SEC filed an appeal against a U.S. court decision from last year, which ruled that Ripple Labs’ XRP is not a security.
Last year, Judge Analisa Torres ruled in favor of Ripple Labs in a lawsuit filed by the U.S. SEC, in which the financial regulator claimed that XRP was an “unregistered security.”
Responding to the SEC’s decision to appeal Judge Torres’ ruling, Ripple Labs CEO Brad Garlinghouse took to X to express his disappointment, vowing to fight to the end.
“While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today—and that does not change even in the face of this misguided—and infuriating—appeal,” he wrote.
What To Consider Before You Buy the Dip
At press time, XRP’s price was down 11.17% in the last 24 hours to $0.52. While the broader crypto and stock markets worldwide are suffering due to rising tensions in the Middle East—after Iran reportedly launched a barrage of missiles targeting Israeli military infrastructure—XRP has shed nearly twice the value of other leading altcoins. Ethereum and Solana, for instance, dropped 4.4% and 6.3%, respectively, in the same period.
The idea that the SEC’s appeal may only cause a temporary dip in XRP’s price, with the potential for positive news to push it to new highs, is enticing. However, here are a few things to consider before deciding to buy the dip:
- The drop in XRP’s price is not solely triggered by the SEC’s appeal. The entire crypto market is suffering due to geopolitical uncertainties in the Middle East. Other tokens, such as Pepe, Fantom, and Solana, have also lost over 8% on average in the last 24 hours.
- Any decision in favor of Ripple Labs, which could potentially drive up XRP’s price, is not coming anytime soon. Court proceedings take time, and other important events, such as the U.S. presidential elections in November, could impact the broader crypto market. Consider this if you’re looking to buy the dip for a quick short-term gain.
- Despite the recent drop, XRP’s price is still above $0.51, around the same level it was on September 9. Interestingly, the token had lost as much value between September 30 and October 2, prior to the SEC’s appeal.\
- XRP faces stiff resistance at the $0.65 level. Given the current geopolitical turmoil and the consistent decline in the prices of the top 10 cryptocurrencies by market cap, XRP may slip further this week.
Note: This is not investment advice and should not be construed as such. Crypto investments are high-risk and before making any investment decision you must consult your accredited financial advisor.
