- XRP dropped 5.78% on August 4, continuing its five-day losing streak and falling to $0.5234.
- Uncertainty over US economic policies and regulatory actions, including potential changes in SEC leadership, affects XRP’s market sentiment.
The price of XRP fell by 5.78% on August 4, marking the fifth day in a row that its price has been in the red zone. This drop comes after a 0. 87% decline on August 3, which saw the token close the session at $0. 5234. Similarly, the overall cryptocurrency market followed this decline, dropping by 4. 49% to $1.8 trillion in market capitalization. The extended bearish trend signifies heightened market risks and fluctuations within the crypto market.
Additionally, the market capitalization of cryptocurrencies dropped by about $270 billion. This decline is in line with the sell-off in Asia-Pacific equities, including the Nikkei 225 Index of Japan, which dropped by up to 12%. The decline persists in a downward trend that started last week after the Bank of Japan raised interest rates to the highest level in 16 years.
XRP Faces Notable Price Dro
XRP has had a significant decline over the last 24 hours, losing about 16% of its value. The price dropped from close to $0.5471 to $0.46 The current price trend shows that there is still bearish pressure, with XRP closing close to its daily low.
Key technical levels include a high at $0.5562 and a low at $0.4545, suggesting the price remains near the lower boundary of its range. Trading volume surged by 205%, reinforcing the downtrend. This increase in volume, coupled with a price decrease, typically signifies strong selling pressure. Additionally, XRP’s market cap has decreased by 16.15%.
Potential SEC Leadership Changes Spark Speculation
The ongoing uncertainty regarding the US economic policies and regulations has also impacted the markets. Cautiousness has dominated political debates, including those regarding the SEC Chair, Gary Gensler.
Recent commentary from Fox Business Journalist Eleanor Terrett suggested President Biden could demote Gensler without Congressional approval, shifting the focus to a more crypto-friendly SEC leadership. This could affect the market structure of XRP as it may reduce regulatory scrutiny and shift enforcement strategy.
On July 2023, District Judge Torres stated that the sales of XRP via programmed way do not fall under the Howey Test’s criteria that determine whether an asset is a security. This decision gave some optimism within the crypto community regarding better sector regulation. The case of the SEC against Ripple, which has yet to be decided on the penalty that Ripple might incur for selling unregistered XRP, also contributes to market volatility. The possible consequences span from $10 million, which Ripple suggested, to $2 billion and an injunction, as stated by the SEC.
Some traders like Cryptoinsightuk say that Ripple may, to an extent, outperform Bitcoin if the latter stabilizes. Similarly, XRP Captain, an analyst, has posited that XRP has practical use cases that could propel its value. Last month, XRP Captain predicted that XRP might reach $57, following a notable price increase to $0.74 in March. Ripple CEO Brad Garlinghouse has also emphasized the importance of real-world utility for XRP, reinforcing the company’s focus on practical applications rather than speculative gains.
https://twitter.com/Cryptoinsightuk/status/1820132498845647082
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