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While the crisis in the Middle East might be the primary reason behind the current Bitcoin (BTC) and general market slip, XRP’s drawdown was compounded by the latest U.S. SEC move. The market regulator stunned the community on Oct. 2 when it filed a Notice of Appeal to contest XRP’s sale status. This unique twist has sent the price of XRP down significantly.
XRP liquidation and performance trends
According to data from CoinGlass, XRP has suffered a total liquidation worth $11.28 million over the past 24 hours. This figure implies that traders lost 21.5 million XRP during this period.
Short traders’ liquidation accounted for a little above $621,000, with long traders scoring $10.66 million overall. This massive figure is understandable, considering many traders were betting on the lower chances of the SEC appealing the decision until it made a 180-degree turn.
Despite the bearish trend, the data proves that XRP liquidation is better than many envisaged. One piece of evidence is that the Solana (SOL) liquidation is still slightly higher at $12.65 million. However, Solana has more downturn with short sellers, as $1.79 million have been liquidated from this group in a 24-hour period.
As of this writing, XRP's price had changed hands for $0.5183, down 11.16% in 24 hours.
What's next for XRP?
With the appeal, legal experts are projecting at least two more years of litigation, which means uncertainty for XRP. For close to four years, the U.S. SEC lawsuit has prevented XRP from benefiting from past bull cycle events.
This unfavorable historical trend might repeat itself moving forward. Since investors will want to avoid getting caught up in regulatory crackdowns, the rate of XRP adoption will likely plunge.
This is a huge concern, considering how new alternative tokens with no baggage are regularly surfacing on the market.