Major cryptocurrencies are seeing a significant drop in prices as the market resumes its downward spiral.
Bitcoin’s recent bull rally did not have enough legs to hold the $30K price level, with BTC now trading near $29,400. Altcoins are bearing the brunt of the current bearishness, with XRP posting the worst losses of any top 20 cryptocurrency.
The SEC has finally confirmed that it will appeal Ripple’s recent landmark victory, posing a serious threat to XRP’s growth prospects. Stellar Lumens also continues its strong correlation with Ripple, plunging in response to the SEC FUD.
The SEC’s hawkish stance, in addition to the upcoming CPI report, has forced investors to rethink their strategy.
One token that’s emerged as a potential alternative to XRP is XRP20, a new stake-to-earn coin that’s raised over $1.8 million in just two weeks of its presale.
XRP Price Plunges After SEC Confirms Ripple Appeal
The US Securities And Exchange Commission has addressed a letter to SDNY District Judge Analisa Torres, requesting an interlocutory appeal against Ripple’s watershed win.
Torres had awarded a partial victory to Ripple when she ruled that the programmatic sales of XRP tokens to retail investors did not meet the Howey criteria and thus did not violate the Securities Act. However, she did state that Ripple’s institutional sale of XRP tokens was, in fact, illegal.
The SEC’s motion to appeal will also seek to stay any further court proceedings, including Torres’ ruling that awards XRP its non-security status.
An SEC appeal was likely already priced in by the market and therefore did not lead to absolute bloodshed. Nevertheless, XRP has plummeted close to 2.5% over the past 24 hours, bringing its weekly loss to over 5%.
Ripple supporters are putting up a vociferous defense against SEC’s appeal. Pro-XRP lawyer Jeremy Hogan states that the SEC’s decision is questionable, and clarified that it is not appealing XRP’s non-security status, only its losses on the programmatic sales front.
Crypto trader @cryptovilian also remains bullish on XRP and believes that it will present an excellent selling opportunity at $8.
However, other traders are more skeptical, with @KingDoggoXRP asking his followers to not purchase XRP until it retests $0.55. Expert analyst @CryptoTony_ has the exact same assessment, revealing that he will place longs only when the token descends below the support at $0.56.
Stellar Lumens’ strong correlation to Ripple means that XLM has also adopted a bearish stance, correcting 2.5% over the past day. The token is trading at $0.138, but experts predict that it will likely plunge below its support at $0.135.
Experts are also fearing the impact of the upcoming CPI inflation report, set to be released today. Michael van de Poppe, the founder of MN Trading, believes that a bad inflation reading may be on the cards today, leading to more downward movement for altcoins like XRP and XLM.
New Stake-to-Earn Token XRP20 Raises $1.5 Million in Presale – Could it be an XRP Alternative?
While tokens like XRP and XLM look primed for a more bearish trajectory, there are still several new cryptocurrencies that are growing despite the wider market’s struggles.
The recently-launched XRP20 token is one such coin, which is currently in its presale phase that has already raised $1.8 million in less than two weeks.
The token claims to be “the second coming of XRP” and is affording a second chance to investors who missed out on Ripple’s 22,000% all-time rally. XRP20 is priced at just $0.000092 in the ICO, which is 30 times cheaper than XRP at its all-time low despite offering similar growth prospects.
While Ripple’s services mostly focus on institutional clients, the XRP20 project is also offering an excellent opportunity for retail investors to generate passive income through its on-chain stake-to-earn mechanism.
Its ERC-20 design is compatible with popular crypto wallets and platforms, making it easier for investors to store and trade the token. The project has also allocated 10% of the tokens to provide liquidity on decentralized exchanges, ensuring a seamless trading experience after its launch.
10% of all XRP20 tokens will also be burned, along with 0.1% of every transaction, to create a deflationary supply and boost the token’s value. The presale has a hard cap of $3,650,000, with now less than 50% of tokens remaining.
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