XRP, the fourth-ranked cryptocurrency, has been in a free fall against Bitcoin (BTC), the leading digital currency in terms of price metrics. According to data from CoinMarketCap, XRP has experienced a significant decline against Bitcoin over the last 24 hours.
Is court decision impacting XRP’s price?
Notably, XRP is threatening to breach the $2 support as it experiences intense volatility on the cryptocurrency market. As of press time, XRP was changing at $2.09, representing a 4.64% decline within this time frame. The coin crashed from its peak of $2.19 to this level and looks likely to continue its downward path.
Conversely, Bitcoin rose by a significant 1.5% to $107,003. This is higher than the overall performance of the crypto market, which was pegged at 0.9%.
XRP’s notable decline against Bitcoin can be linked to the recent U.S. District Court decision. In a stunning move, presiding Judge Analisa Torres denied a motion filed by Ripple Labs and the Securities and Exchange Commission (SEC) for an indicative ruling.
According to the ruling, Judge Torres maintained that the arguments for appeals did not convince the court and would not modify her final judgment.
This development has sparked concern among some investors, who are now uncertain about XRP’s future outlook. This uncertainty is now reflected in the price of XRP, resulting in a significant sell-off despite trading volume jumping by 26.06% to $3.29 billion.
How XRP resilience might help
XRP has demonstrated resilience for much of this year, managing to stay above the psychological $2 level. The current development, which once again threatens this crucial support, may blow over depending on the ecosystem's backing.
For instance, there has been a 442% increase in XRP active addresses over the last 48 hours, with the total number of addresses now reaching 181,000. This metric suggests growing interest and usage among market participants.
If Ripple communicates the next steps in the lawsuit to prove all is well, it may help alleviate concerns among XRP investors.
