Ripple’s XRP is one of today’s worst performers, plunging by over 15% throughout the past 24 hours.
The cryptocurrency is now trading around the pivotal level of $0.5, and it’s interesting to see if it will hold. Meanwhile, here are a couple of potential reasons for the crash.
SEC v. Ripple Case Update
Last week, the US Securities and Exchange Commission filed an interlocutory brief seeking permission to appeal the recent ruling of Judge Analisa Torres.
The US District Court for the Southern District of New York has granted the Commission’s request to file a motion for an interlocutory appeal, thereby pushing the case into a new phase.
It’s worth noting that this decision doesn’t authorize the appeal but rather allows the Commission to request it formally.
Yesterday, Ripple opposed the request for an interlocutory appeal, arguing there’s no extraordinary circumstance that justifies a departure from the rule that requires all issues to be resolved before an appeal.
In any case, the price has not taken the news positively, crashing by more than 15% in the past 24 hours alone.
Broader Market Shakedown
The entire market is tumbling, and it’s quite natural for XRP to fall in line with it. Hours ago, Bitcoin’s price plunged toward $25,000, leaving a whopping $1 billion worth of liquidated leveraged positions.
Ripple was no exception. Data from Coinglass shows that over $50 million worth of leveraged XRP positions were liquidated in the same period, which might as well be part of the reasons for the considerable crash.
It remains very interesting to see if the market will continue tumbling or if there’s a recovery in sight at this pivotal level for XRP.
