Experts Forecast Further Decline of XRP for Three Reasons December 28, 2020 December 28, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsDecember 28, 2020 by Kelly Cromley

Experts Forecast Further Decline of XRP for Three Reasons

XRP price fell sharply below $0.30, recording a low of $0.2138 on cryptocurrency exchange Binance. Following the lawsuit filed by the US Securities and Exchange Commission (SEC), selling pressure increased on XRP.

Analysts put forth three main reasons for the sharp decline in the price of XRP: SEC lawsuit, bearish sentiment and probable delisting by cryptocurrency exchanges. Nevertheless, it is not the first well-publicized lawsuit filed by the SEC against a blockchain firm or promoters of a crypto token.

Both Kik and EOS inked a settlement deal with the SEC. As per Adam Cochran of Cinnemhain Ventures, cases related to the aforesaid blockchain firms were based on violation of security laws during token distribution. With regards to XRP, Cochran stressed that the regulatory organization is blaming XRP of breaching securities rules. He stated:

“Unlike Kin and EOS, where the SEC alleged the securities violations were just at the point of sale, the SEC is alleging here that $XRP is *STILL* in violation of securities law present day. That means they believe it is currently a security, hence the exchange reactions.”

A number of attorneys have pointed out that Ripple might find it difficult to claim lack of knowledge due to the supportive documents submitted with the lawsuit. Therefore, for Ripple, the legal case has turned out to be a cumbersome process to manage. However, Ripple’s CEO Brad Garlinghouse has stated that he would give a tough fight in court. Cochran tweeted:

Cochran further said that certain sources proposed Coinbased had talks with their advocate regarding XRP’s delisting. There is no need for exchanges to delist XRP as of date. In case, the court declares XRP as a security, nevertheless, lawyers stated that exchanges could stare at numerous issues and could resort to delist XRP to safeguard their interests. Cochran opined:

Data provided by Santiment indicates that the view of social media on Ripple has considerable deteriorated. As per Santiment, social media talks about the crypto are still centered about XRP and the case filed by SEC (securities and exchange commission). Santiment analysts stated:

Data provided by The Tie also indicates that the daily sentiment reading declined to its second-lowest figure for last week, while the volume of tweet surged to historical highs.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.