- XRP falls 12.75% in 24 hours, reaching $0.511, due to SEC appeal and market uncertainty.
- Traders reduce XRP exposure, fearing potential reclassification as a security after SEC appeal.
- Middle East tensions drive investors to safer assets, adding to XRP’s broader market decline.
XRP experienced a sharp decline over the past 24 hours, losing approximately 12.75% of its value to reach $0.511 on October 3. The drop follows recent developments in the Ripple lawsuit and rising geopolitical tensions, which have contributed to heightened market uncertainty.
SEC Appeal Sparks XRP Downturn
The United States Securities and Exchange Commission (SEC) filed an appeal on October 2, challenging Judge Analisa Torres’ earlier ruling that secondary sales of XRP did not qualify as securities transactions. This appeal has led to a nearly 16% drop in XRP’s price, wiping out the gains it secured in September. Legal experts had anticipated the SEC’s appeal, as the judge’s decision found that XRP did not meet all the criteria under the SEC’s Howey test.
This development has prompted traders to reduce their XRP exposure due to concerns that a higher court could overturn the previous ruling, potentially reclassifying XRP as a security. Such an outcome would likely lead to increased regulatory scrutiny and impact the token’s market value.
Broader Market Sell-off and Potential Rebound
XRP’s decline has coincided with increased tensions in the Middle East, which have impacted risk-on markets, including cryptocurrencies. European stocks fell, with the Stoxx Europe 600 index down 0.8%, and U.S. equity futures also pointing to a weaker open. The recent escalation involving airstrikes in Beirut and potential retaliation against Iran has caused investors to move toward safe-haven assets, such as the U.S. dollar and bonds. The U.S. dollar index (DXY) is currently trading at its highest level in a month.
Despite the recent losses, XRP may still see a rebound. The cryptocurrency remains within an ascending channel trend, with support found at the $0.50-$0.52 range, which coincides with the 0.618 Fibonacci retracement level. If buying interest re-emerges at this level, XRP could potentially test the upper resistance near $0.65 in the coming weeks.
However, a break below the support trendline and 0.618 Fibonacci level may lead to further declines, with the next support zone estimated around $0.4639, at the 0.236 Fibonacci level.
