Ripple Price Tanks Amid SEC Appeal Approval: What Happens Now?

XRP price plunges post-SEC appeal approval, raising concerns over potential reversal of Judge Torres’s ruling. Market reacts swiftly.

Brad Garlinghouse looking worried about a big red downward arrow next to him.
Created by Gabor Kovacs from DailyCoin
  • The price of Ripple’s XRP has taken a sharp dive post-court decision on the SEC’s Appeal.
  • Uncertainties have arisen over XRP’s classification as the SEC’s appeal has been approved.
  • A high-stakes countdown has commenced with the SEC’s motion deadline and Ripple’s imminent response.

The Ripple (XRP) price experienced a rapid downward surge mere moments after news broke about the court’s green light for the US Securities and Exchange Commission (SEC) to proceed with an interlocutory appeal. This sudden slump has been triggered by concerns that Judge Analisa Torres’s prior ruling on July 13 might face reversal.

Judge Torres Approves SEC’s Appeal in Ongoing Ripple Case

In the afternoon of August 17, during the US session, Judge Analisa Torres granted approval for the SEC’s recent request, made on August 9, to initiate an appeal regarding the July 13 verdict. In that preceding ruling, the same judge had concluded that XRP held the classification of a security when sold to institutional investors, as opposed to retail customers.

The SEC’s decision to appeal holds the “interlocutory” status, signifying that this appeal is being pursued. At the same time, various aspects of the ongoing case remain pending finalization, and the trial continues.

This push for an appeal from the financial regulatory body originates in the Terraform Labs case, where Judge Jed Rakoff rejected the firm’s plea to dismiss the case based on Judge Torres’s prior judgment in the SEC vs. Ripple legal tussle.

Ripple’s Price Plummets but Odds Still Favorable

Regarding this scenario, Ripple’s General Counsel, Stu Alderoty, holds a positive outlook, asserting that the odds remain in their favor.

The trajectory of Ripple’s price has shifted into a full-throttle decline, erasing all the progress achieved in the July 13 surge. XRP has plummeted by 14%, and its decline over the past seven days stands at 20%, reaching a rest at $0.506 at the time of writing. The Relative Strength Index has plummeted to an all-time low.

Around this pivotal announcement, the crypto market witnessed the liquidation of nearly $23 million worth of XRP long positions in less than one hour.

On the Flipside

  • The broader cryptocurrency market also witnessed a downturn during the same period, implying that the decline might have root causes beyond this court ruling.
  • Legal proceedings can often be complex and unpredictable, leading to varying interpretations of the same ruling.

Why This Matters

The court’s approval of the SEC’s interlocutory appeal request introduces a pivotal juncture in the XRP saga. Ripple’s legal battle holds the potential to reshape how cryptocurrencies are classified and regulated, casting a spotlight on the intricate interplay between digital assets and regulatory oversight.

To delve deeper into the SEC’s interlocutory appeal and Ripple’s response, check out the insights from Ripple executives; read more here:
Ripple Executives Comment on SEC’s Bid for Interlocutory Appeal

To stay updated on the recent market trend concerning stablecoins and their lowest value since August 2021, read more here:
Stablecoin Market Value Hits Lowest Point since August 2021

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.