Despite the good news regarding Ripple's lawsuit, XRP's market cap has decreased by over $5 billion in the past month.
As the community surrounding XRP observes the development of the continuing lawsuits between the Securities and Exchange Commission (SEC) and Ripple, the token's price has experienced high levels of volatility over the past few weeks.
Indeed, selling pressure is being exerted on XRP, leading to the cryptocurrency's loss of $ 4.87 billion worth of market capitalization in the past month. The market capitalization of XRP had fallen to $19.43 billion as of press time on December 7, 2018, marking a monthly loss of almost 20% from the $23.91 billion recorded on November 11.
XRP Technicals
In other places, the amount of selling pressure exerted has caused the price of the token to drop by twenty percent during the same period. Currently, the value of one unit of the cryptocurrency that is currently ranked seventh in market capitalization is $0.38.
Notably, attention has been directed toward XRP bulls to drive the asset's price above the pivotal $0.40 level. The level is an important resistance level for XRP, and breaking over it will most likely make it possible for the token to reach $0.50. In other news, the price of XRP could experience a further decline to $0.35 if the selling pressure continues for an extended period.
Positives in the Ripple vs. SEC Suit
Interestingly, despite Ripple achieving some limited victories (3) in its legal dispute with the SEC, the capitalization of XRP has decreased. In this regard, legal commentators have speculated that the dispute between the two parties would most likely be resolved amicably, which has led to the possibility that the case will be decided in favor of the blockchain company.
One of the most significant victories was obtained when the presiding judge rejected the SEC's request to conceal the documents related to William Hinman, who had previously served as Division Director. The controversial materials included a speech by Hinman in which he claimed that Ethereum (ETH) should be classified as a security.
In addition, Ripple garnered support after the court allowed briefs of support from corporations that use the XRP technology, industry organizations associated with cryptocurrencies, and asset holders.
It is important to note that as a result of the minor victory, XRP had a temporary price increase, partially bucking the negative tendency affecting the whole cryptocurrency market.
The broad price correction across the crypto market has led to the majority of assets consolidating to locate a bottom for a new rally. This can be linked to the fact that XRP has been in a downward trend for the past month. The token is still subject to the influence of prevalent macroeconomic factors, such as increasing inflation, in addition to the consequences of the failure of the FTX crypto exchange.
Where does XRP go from here?
In the meantime, the attention of the XRP community has been directed toward the SEC lawsuit as the resolution of the matter draws closer. The decision will assist in determining which types of assets can be categorized as securities following the rules of the United States. Both sides have finished putting the finishing touches on their submission briefs at this point.
Notably, the verdict in the case will almost certainly affect the price of XRP, and numerous technical analyses point to an optimistic outlook for the digital currency.
