thecryptobasic.com
XRP proponents have observed a notable dichotomy in the price action of XRP following the SEC’s latest legal actions.
On Thursday, the U.S. SEC signaled that it would appeal favorable rulings in the Ripple lawsuit that concluded a few months ago. By Friday, it officially progressed with the move, submitting official applications to the U.S. appellate court.
The initial notification on Thursday sent shockwaves through the XRP market. It prompted many to sell off their XRP tokens, which caused its price to plummet.
This massive sell-off also occurred when the SEC originally filed a lawsuit against Ripple in December 2020. However, the latest price drop in XRP resulting from the SEC’s legal action has been less severe this time compared to the past.
XRP Price Crash After SEC Filed Appeal
On October 2, when news of the SEC’s motion to appeal became public, XRP had established an intraday high of $0.6058. By October 3, XRP had collapsed to $0.5101, representing a 15.79% price drop.
Interestingly, by October 4, even after the SEC registered its appeal against Ripple in the Second Circuit court system, XRP’s price had already recovered from Thursday’s fall. At press time, XRP is trading at $0.5323, up by 1.67% over the past day.
XRP Price Collapse After SEC Filed Lawsuit in 2020
In contrast, the price crash in 2020 was more severe and extended over several days. On December 20 that year, XRP was priced at $0.5678. However, by December 23, after news of the lawsuit broke, XRP had plummeted to $0.2214, a massive 61% decline.
The price slump became even more intense as more exchanges began delisting XRP. By December 29, XRP had dropped to $0.1748, approximately 70% lower than its price of $0.5678. This was the lowest value XRP reached before it began a recovery phase.
XRP to $4 or $6
The resilience XRP has shown amid the latest legal action has instilled confidence in proponents regarding XRP’s potential to rally to $6 soon. Market pundit Bobby A is among those holding this view. In a commentary, he warned that the SEC’s appeal notice is a “sell trap,” predicting that XRP will reach $4.23.
Bobby A believes the macro charts remain bullish and argues that sell-the-news behavior often leads investors to miss opportunities. He tweeted that XRP’s indicators still suggest an impending uptrend.
Meanwhile, an analysis has suggested that XRP could even rise to $6 in the near term. After hitting a low of $0.17 amid the lawsuit in December 2020, XRP later rallied by 1,021% to $1.96 by April 2021.
Factoring a similar percentage increase on XRP’s recent low of $0.5101 amid the appeal notice, it could rally up to $5.72, approximately $6, as early as January. However, the likelihood of history repeating itself remains uncertain.