On November 15, 2023, XRP, the cryptocurrency owned by Ripple, saw a 12% decline in value, dropping to $0.62. Since August 17, 2023, this is the most daily percentage decline for XRP.
The cryptocurrency market was generally volatile at the time of the large-scale XRP sale. The most popular cryptocurrency in the world, Bitcoin, likewise saw a 10% decrease in value that day.
Analysts speculate that a number of reasons, such as the following, could be behind the XRP sell-offs:
Uncertainty regarding XRP’s legal future. The Securities and Exchange Commission (SEC) of the United States is suing Ripple for allegedly marketing XRP as unregistered securities.
Increasing rivalry in the market for cryptocurrencies. Other cryptocurrencies including Solana, Ethereum, and Bitcoin compete with XRP.
Ripple has promised to fight the lawsuit and has refuted the SEC’s accusations. But the price of XRP can still be affected by the lawsuit’s uncertain outcome.
Another indication that investors are growing disinterested in cryptocurrencies could be the drop in XRP. In the year preceding the SEC case, XRP had increased 400%. But in the intervening year, the cryptocurrency’s value has dropped by 70%.
In the upcoming months, the price of XRP is probably going to continue fluctuating. The SEC lawsuit’s verdict will have a significant impact on how cryptocurrencies develop in the future.