As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of turbulence and twists. The current state of XRP is no exception to this rule, and it seems that the latest U.S. SEC move has added fuel to the fire.
Although the ongoing turmoil in the Middle East could be the main factor causing Bitcoin (BTC) and overall market decline, the case of XRP has been further impacted by a recent U.S. Securities and Exchange Commission (SEC) action. On October 2nd, the SEC surprised the community by filing an Appeal Notice to challenge the classification of XRP as a security. This unexpected move has resulted in a substantial drop in the price of XRP.
XRP liquidation and performance trends
Over the last 24 hours, as per the information from CoinGlass, my analysis indicates a total liquidation of XRP amounting to $11.28 million. This data suggests that approximately 21.5 million XRP were liquidated during this timeframe, meaning those traders saw significant losses in their holdings.
In simple terms, short traders had to pay out around $621,000 collectively, while long traders gained approximately $10.66 million in total. This substantial difference can be attributed to the fact that many traders initially underestimated the likelihood of the SEC reversing its decision, which eventually happened drastically.
Contrary to the pessimistic market sentiment, the figures show that XRP‘s liquidation performance surpassed expectations by many. An indication of this is that Solana (SOL) liquidation stands at a slightly higher $12.65 million. However, it’s important to note that Solana has experienced a more significant downturn due to short sellers, with $1.79 million in liquidations over the past 24 hours from this group alone.
As of this writing, XRP‘s price had changed hands for $0.5183, down 11.16% in 24 hours.
What’s next for XRP?
Due to the ongoing lawsuit by the U.S. Securities and Exchange Commission (SEC), legal experts predict at least two more years of court battles ahead, leaving XRP‘s future in a state of doubt. For nearly four years, XRP has missed out on the positive effects that typically come with bull market cycles, all due to this SEC lawsuit.
Looking ahead, there’s a possibility that an unwelcome pattern from the past could resurface. Given that investors tend to steer clear of situations involving increased regulation, the pace at which XRP is adopted may significantly decrease.
This is a huge concern, considering how new alternative tokens with no baggage are regularly surfacing on the market.
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2024-10-03 17:24