XRP supporters have observed a notable dichotomy in XRP’s price action following the SEC’s latest legal action.
On Thursday, the US SEC said it intends to appeal a favorable ruling in the Ripple case that concluded several months ago. It formally moved forward by Friday, filing a formal application with the U.S. Court of Appeals.
The initial notification on Thursday shocked the XRP market. This caused many people to sell their XRP tokens, causing the price to plummet.
This massive drop also occurred when the SEC first filed a lawsuit against Ripple in December 2020. However, the recent drop in XRP’s price due to the SEC lawsuit was less severe this time than in the past.
XRP price plummets after SEC appeal
On October 2, when news of the SEC’s appellate motion became public, XRP established an intraday high of $0.6058. By October 3, XRP had crashed to $0.5101, representing a 15.79% price decline.
Interestingly, by October 4th, XRP’s price had already recovered from Thursday’s drop, even after the SEC registered an appeal against Ripple in the Second Circuit Court System. At the time of writing, XRP is trading at $0.5323, up 1.67% over the past day.
XRP price plummets after SEC lawsuit in 2020
In contrast, the 2020 price crash was more severe and lasted for several days. On December 20th of the same year, the price of XRP was $0.5678. However, by December 23, after news of the lawsuit broke, XRP had plummeted to $0.2214, a massive 61% drop.
The price slump became even more intense as more exchanges began delisting XRP. By December 29th, XRP had fallen to $0.1748, about 70% lower than the price of $0.5678. This was the lowest value XRP reached before entering the recovery phase.
Chart price crash after 2020 SEC lawsuit
XRP to $4 or $6
The resilience shown by XRP amid the latest lawsuits has given supporters confidence in the potential for XRP to rise to $6 soon. Market commentator Bobby A. is one of those who holds this view. In his commentary, he warned that the SEC’s notice of appeal was a “sell trap” and predicted that XRP would reach $4.23.
Bobby A. believes macro charts remain bullish and argues that news-selling behavior often causes investors to miss opportunities. He tweeted that XRP indicators still point to an imminent uptrend.
Meanwhile, analysis shows that XRP could even rise to $6 in the short term. After hitting a low of $0.17 amid the litigation in December 2020, XRP has since risen 1,021% to $1.96 by April 2021.
Factoring in a similar percentage increase from XRP’s recent low of $0.5101 under appeal notice, it could rise to $5.72 (about $6) as early as January. However, the possibility of history repeating itself remains uncertain.
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