3 reasons why XRP price can continue to fall after a 63% crash in four days

3 reasons why XRP price can continue to fall after a 63% crash in four days

The XRP price fell well below $ 0.3 on December 24th and only hit $ 0.2138 on Binance. Selling pressure on XRP has increased following the high profile lawsuit filed by the US Securities and Exchange Commission against Ripple.

There are three main factors behind XRP’s sharp drop in prices, namely the SEC lawsuit, which is likely to be delisted by exchanges and worsen market sentiment.

XRP / USD daily candle chart (Coinbase). Source: TradingView.com

Ripple lawsuit is worse than EOS and Kik, says investor

This isn’t the first high-profile lawsuit or settlement the SEC has with a blockchain firm or token.

EOS and Kik have both resigned themselves to the SEC and, according to Adam Cochran of Cinnemhain Ventures, they were viewed as a security breach at the point of sale.

Regarding XRP, Cochran stressed that the SEC claims the cryptocurrency is still in violation of the Securities Act. He said:

“In contrast to Kin and EOS, where the SEC claimed that the securities violations were just at the point of sale, the SEC claims here that $ XRP * STILL * violates today’s securities law. That said, they believe it is currently a security, hence the exchange reactions. “

Several attorneys similarly found that Ripple could have difficulty pleading ignorance based on the documents cited in the lawsuit. Therefore, the lawsuit becomes more complex for Ripple when you consider CEO Brad Garlinghouse said he would fight it. Cochran said:

“You have multiple document points demonstrating centralization, acknowledging securities issues, and written sales practices. There is no room here to invoke ignorance / stupidity. You have personally labeled the executives liable for what the SEC does if they take a kill shot. This is far more common in fraud than in general securities lawsuits. “

Exchange delistings are taking place

Cochran also stated that some sources indicated that Coinbase had discussions with lawyers about the delisting of XRP.

Exchanges don’t have to delist XRP yet. However, if it is declared as collateral by the court, attorneys said exchanges could face various risks and may be forced to preemptively delist the token. Cochran wrote:

“Sources suggest that Coinbase has already had discussions with attorneys about the delisting of $ XRP. It appears that two potential plans are emerging, one of which is to delist on Friday. Unclear which Coinbase products will be affected, but most likely Coinbase and Pro. “

The mood on social media is deteriorating

Data from Santiment shows that social media sentiment surrounding Ripple has declined significantly.

The hottest topics of the day in crypto. Source: Santiment

According to Santiment, social media discussions around crypto are still dominated by XRP and the SEC lawsuit. Santiment analysts said:

“The topics most discussed today are dominated by $ XRP and #Ripple as the #SEC hired the company to sell securities.”Daily sentiment vs. Tweet volume. Source: The Tie

Data from The Tie also shows the daily sentiment score fell to its second-lowest level this week, while tweet volume rose to record highs.

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