The XRP community has seen reduced optimism as XRP plunges sharply amid the buzz surrounding Ripple and SEC legal frenzy.
XRP has seen its price fall significantly by 7.29% in just one day, according to data from CoinMarketCap.
Source: CoinMarketCap
Although XRP’s negative price action follows a broad crypto market bloodbath experienced on Tuesday, XRP has led the negative trend with the deepest price drop among the top 10 leading cryptocurrencies.
Ripple-SEC stuns with shocking update
This negative trend has coincided with Ripple and the SEC’s recent legal update, leaving investors to worry about its influence on XRP’s potential.
On June 16, Ripple and the SEC disclosed a mutual decision to take a pause on the court appeal, according to a recent post from former U.S. federal prosecutor James Filan.
While XRP has seen its trading volume surge significantly by 33.96% to a massive $4.74 billion, the notable drop in the value of XRP suggests that holders are increasingly selling off their assets.
As such, it appears that the Ripple pause request has sent panic across the market, with $4.74 billion worth of XRP being moved amid increased selling activities.
While the long-standing legal battle between the SEC and Ripple has long shaped XRP’s price positions over the years, XRP holders are uncertain about what’s to come out of the pending discussions. While this has sparked uncertainty across the market, retail participants appear to be reacting cautiously.
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However, market analysts have expressed enthusiasm regarding the Ripple-SEC legal pause, as they believe that the decision might have been triggered by ongoing settlement discussions and negotiations regarding how crypto assets will be regulated in the U.S.
Nonetheless, the Ripple and SEC legal battle, which began in late 2020, has long influenced the market performance of XRP and often stands as a defining case for the broad crypto market.
Thus, XRP holders are worried that the prolonged pause on the court appeal could delay XRP’s regulatory clarity, causing investors to lose confidence in the token’s potential.