Popular XRP community member “Common Sense Crypto” names the main reason for XRP’s daily chart crash.
The XRP community was disappointed after the coin recorded a sharp drop yesterday. Data from CoinMarketCap shows that the price of XRP fell below the $0.6 threshold to a 24-hour low of $0.5869.
Notably, the price of XRP fell from $0.6215 to $0.5866 within three hours, representing a decline of 5.61%. However, the decline was short-lived as the seventh-largest cryptocurrency by market cap recovered above the $0.6 price level.
Reason for XRP Price Drop
In response, a prominent member of the Common Sense Crypto community attributed the price drop to the results of yesterday’s closed-door meeting at the SEC headquarters.
It is worth noting that the price of XRP jumped to around $0.64 after speculation about a possible settlement of the SEC lawsuit against Ripple. Several members of the XRP community have speculated that the SEC may reach a settlement with Ripple at its closed-door meeting scheduled for July 25, 2024 at 2:00 PM (ET).
These speculations were fueled by the meeting’s agenda, which revolved around settling administrative litigation and injunctions. However, the meeting did not result in a settlement of the SEC’s lawsuit against Ripple, as many expected. As a result, XRP faced a sell-off, according to Common Sense Crypto.
Like every month, these meetings end in nothing! $xrp pic.twitter.com/OLhJuRzqac
— Common Sense Crypto (@TheCSCrypto) July 25, 2024
A community member stated that the trend of XRP selling is often seen when the results of closed SEC meetings do not yield positive results.
The commentary states that most investors tend to lose confidence and decide to sell their XRP holdings when SEC meetings do not produce valuable results, especially settlements.
Investors Await Resolution of SEC Lawsuit Against Ripple
Notably, investors are eagerly awaiting the final outcome of the Ripple lawsuit. The lawsuit has been known to have a bearish effect on the price of XRP since it emerged in December 2020.
For example, XRP failed to register a new all-time high in the 2020/2021 market cycle, as most of its peers did. XRP’s previous ATH record of $3.84 was set on January 4, 2018, more than six years ago.
As investors wait for the lawsuit to be resolved, the price of XRP typically rises sharply when rumors of a possible settlement surface and falls when those rumors fail to materialize. Meanwhile, XRP has fallen 1.02% in the last 24 hours to $0.6067.
