Despite some seemingly positive news recently released about the SEC, the price of XRP continues to fall.
The victory against the SEC has not helped the price of XRP
Right now it seems to have lost almost 2% since yesterday, 12.5% since a week ago, 25% since a month ago and even 53% from a year ago.
Compared to the all-time highs of January 2018, the loss is 81%. But why does the price of XRP keep falling despite seemingly positive news? First of all, it is worth mentioning that the recent news that was made public about the progress of the SEC case against Ripple They seem positive, but they are not necessarily so. In fact, the news is largely made up of information published by Ripple and is therefore biased. According to the company’s interpretation, demand is on its way to Ripple’s victory over the SEC, but the reality is that there are no clear and obvious signs that this is the case. On the contrary, Ripple has been claiming for over a year that the lawsuit is coming to a successful conclusion for them, while the SEC makes no such statement. Therefore, it is possible that the idea that one may have about it is not objective, but strongly influenced by the partial communication of Ripple and the minimal SEC communication. Furthermore, it should be added that the XRP price it is not only influenced by the possible outcome of the ongoing lawsuit. Since the case appears to have been stalled for several months, this may have a minimal impact on XRP price.
Despite Ripple’s Apparent Victory Over SEC, XRP Price Doesn’t Seem To Catch Up
Evolution of prices during the lawsuit
Just consider that in mid-April, when Ripple claimed to have won a huge victory against the SEC, the price of XRP reacted by only going from $0.71 to $0.78. Three days later it was back to $0.73 and the following week it was back to $0.71 as well. It is now at $0.64, well below its pre-announcement level of the apparent great profit.
However, if we extend the analysis to the last few months, starting from the moment the demand started (November 2020), we see that the volume of transactions on exchanges has literally plummeted over time, from $13.6 billion to just over 2, a reduction of 80%.
The problem may be due not only to the loss of attractiveness of XRP, but also, and more importantly, to the enormous growth in attractiveness of other entities, mainly Solarium Y earthwhich have surpassed or come close to XRP in terms of market capitalization during 2021. Not to mention the boom of Dogecoin either Shiba Inu, which have undoubtedly displaced the interest of the masses. For example, the daily Google search volume for Ripple or XRP is currently at its lowest, with XRP 84% less in the last 12 months. In fact, from Google Trends chart it is clear that there has been a crash since the second half of May 2021, that is, due to the collapse of the crypto markets due to the new Chinese ban. Since then, XRP has been unable to recover. So, on the one hand, the SEC lawsuit has had serious long-term consequences, on the other hand, competition has diverted attention from this project and, on the other hand, the positive news that circulates is only in appearance. It remains to be seen, however, how he might react if genuine and objectively positive news were published instead.