Major cryptocurrencies witnessed a sharp downturn as the crypto market slumped close to 1.5% over the past 24 hours. Bitcoin fell another 1% and is on the cusp of falling below the $29,000 price level.
XRP was one of the biggest losers in the crypto market yesterday, seeing a 4.5% correction that resulted in the token trading at $0.66.
As an SEC appeal to Ripple’s recent victory becomes increasingly likely, traders are dumping their XRP holdings, expecting more downward slide. The worsening macroeconomic outlook and the threat of prosecution from the US Department of Justice against Binance are also not helping matters.
Instead, many investors are turning to new tokens. The newly launched XRP20 token could be an XRP alternative, already raised over $220K in its presale in just two days.
XRP Plummets as SEC’s Hawkish Stance Shakes Investor Confidence
Ripple’s landmark victory against the SEC resulted in a major bull rally that saw XRP prices trade near the $0.90 mark. However, the crypto has since remained in the grips of strong bearish forces as it is down 18% in the past 14 days.
XRP plunged another 4.5% yesterday as the SEC’s anti-crypto outlook is starting to take a heavy toll.
Judge Analisa Torres awarded a huge win to Ripple when she ruled that its programmatic XRP sales to retail investors did not meet the criteria set by the Howey Test and thus did not violate the Securities Act.
However, Judge Jed Rakoff, while presiding over the SEC’s case against Terraform Labs, disagreed with Torres’ analysis. He stated that the Howey test does not differentiate between institutional and retail investors.
Rakoff’s opinion has dealt a major blow to XRP’s growth prospects. With an SEC appeal against Ripple more likely than ever, investors are wondering if Ripple’s victory is safe after all.
However, XRP enthusiasts are claiming to remain bullish on the crypto. Pro XRP lawyers John Deaton and Stuart Alderoty have both reaffirmed that Rakoff’s opinion has no bearing on the token and that an SEC appeal will only serve to consolidate Ripple’s victory.
Moreover, XRP backers are also touting the bullish use cases of the token in the finance industry.
Monica Long, the president of Ripple, revealed in a recent interview that XRP’s regulatory clarity has resulted in a surge of engagement from other companies in the US. Ripple also made CNBC’s list of the Top 200 fintech companies in the world.
However, TradingView gives a SELL signal to the token when considering the important moving average indicators on the daily time frame.
Expert crypto trader @WatersAbve also highlights that the XRP is currently facing the threat of falling below the 34-day Exponential Moving Average, which can result in the token plummeting to $0.55.
The token is also receiving no help from the broader crypto outlook. The Semafor news platform reveals that Binance could face fraud charges from the US Department of Justice, a scenario that will be catastrophic for the crypto market.
Crypto trader Michael van de Poppe also reveals that if Bitcoin loses the $29K mark, it could result in an extremely bearish scenario for both BTC and altcoins like XRP.
Could the New XRP20 Token be an Alternative to XRP?
With XRP’s short-term prospects in danger of more downside, investors are looking for alternatives, and one option could be the new XRP20 token.
The XRP20 presale is generating tremendous hype, having raised $200k in less than five days. The token is priced at just $0.000092.
The XRP army is in a state of fervour after Ripple’s recent victory, which could potentially bode well for XRP20 token also. After all, the “Meta Version 2.0” theme is becoming the new trend in the crypto market, with tokens like Pepe 2.0 and Shiba Inu 2.0 seeing remarkable success.
Furthermore, the ERC-20 design of XRP20 offers seamless compatibility with existing platforms and wallets, making it easier for investors to trade, track and store the token.
The project has allocated 19% of the tokens to be burned, resulting in a deflationary token supply and driving up the token’s value. Meanwhile, another 10% of the tokens will provide liquidity on decentralized exchanges, providing a smooth trading experience. The presale has a hard cap of $3,680,000.
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