Despite positive developments in the court case between Ripple and the SEC, the price of XRP has decreased by more than 5%.
Positive News and XRP Decline
XRP continues to lose value, trading below the $2.20 level, despite news of a joint motion by Ripple and the SEC. As reported by Fox Business journalist Eleanor Terrett, both parties have filed a joint motion to the Southern District of New York, asking the court to lift the injunction on Ripple and to release the $125 million held in escrow. The filing also proposes that Ripple only pay $50 million in civil penalties.
Reasons for XRP's Decline
Despite positive news, XRP’s price has fallen by 4.0% in the last 24 hours, currently trading at $2.15. The significant spike in trading volume by 41% indicates increasing selling activity among investors. This has raised questions among the XRP community about why their favored token is experiencing a downturn even amid good news.
Broader Crypto Market and Political Situation
The decline of XRP is not an isolated case; the entire global crypto market is facing difficulties. Bitcoin and Ethereum have also shown declines, and new geopolitical tensions are affecting investor behavior. Escalation of conflict in the Middle East and warnings from U.S. Treasury Secretary regarding inflation risks are creating unfavorable conditions for speculative assets like cryptocurrencies.
Despite the potential resolution of the conflict between Ripple and the SEC, the current market conditions and external factors play a more significant role in the price movements of cryptocurrencies.
