XRP price has noted a sharp decline today, declining more than 15%, after a recent breakout attempt. This price slump has sparked discussions in the digital assets space, especially amid a downturn momentum noted in the broader crypto market. Notably, the market was anticipating a “Uptober” rally, while the recent picture suggests otherwise, fueling speculations in the sector.
So, here we explore the potential reasons that may have caused the recent drop in Ripple’s native crypto today.
Why Is XRP Price Falling Today?
There could be several reasons that could have contributed to the recent slump in XRP price. Let’s take a look at the top reasons that may have triggered the recent selloff in the crypto, and see how it is performing now.
US SEC Files Appeal Notice In Ripple Case
The Ripple Vs SEC lawsuit has been one of the high-profile and closely watched legal battles in the crypto industry. Notably, in the latest development, the US SEC has filed a Notice of Appeal challenging some aspects of Judge Torres’s ruling just before the October 7 deadline.
Meanwhile, many in the crypto community were anticipating a potential last-minute appeal by the SEC in the Ripple case. However, this latest appeal seems to have dampened the market sentiment, indicating that the legal battle will be further extended in the coming days.
Simultaneously, Ripple CLO Stuart Alderoty recently said that the firm is considering a potential cross-appeal in the case. Having said that, the investors appear to be staying on the sideline, seeking more clarity on the future of Ripple SEC battle.
Broader Crypto Market Downturn
Another potential reason behind the recent drop in XRP price could be the gloomy trading scenario noted in the broader crypto market. During writing, the global crypto market cap fell nearly 4%, with Bitcoin, Ethereum, Solana, and other top altcoins declining.
This recent crypto market selloff could be attributed to a flurry of reasons like the recent Bitcoin ETF outflow and other macroeconomic factors. For instance, the latest US PMI data showed that the economy is shrinking, which might have sparked the investors’ concerns.
On the other hand, the market is likely to be taking a pause ahead of the US Job data, scheduled for Friday, October 4. The upcoming US nonfarm payroll and unemployment data are expected to provide further cues on the Fed’s potential stance with the monetary policy plans going ahead.
Recently, Fed Chair Jerome Powell signaled confidence towards a cooling inflation. Simultaneously, other Fed officials have also hinted towards another 50 bps rate cut at the US central bank’s upcoming meeting, which sparked market optimism earlier this week.
XRP Price Slips 15% Today
XRP price slipped over 15% today and exchanged hands at $0.5106, indicating the lowering interest of the investors. Its trading volume soared about 16% to $3.21 billion. Notably, the crypto has recently touched the $0.6622 level, sparking market discussions over a further rally in the crypto’s price.
In addition, many market pundits have also shared a bullish outlook on the crypto’s price, suggesting a potential rally ahead. For instance, one renowned analyst said that XRP is preparing for a rally, potentially hitting $3 by Christmas.
However, the latest appeal seems to have dampened the optimistic sentiment in the market. According to CoinGlass data, the XRP Futures Open Interest fell more than 14% to $712 million, indicating a waning market interest in the crypto. It appears that the market participants are seeking further clarity on the legal battle before putting their bets into the crypto.
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