XRP ($XRP) holders felt a wave of uncertainty this week as the token’s price stumbled amid the SEC’s move to appeal the recent court victory for Ripple Labs.
The regulatory overhang led $XRP to erase much of the gains made in the two days prior, with the token falling back to the $0.624 level once more.
Meanwhile, excitement continues to build around the XRP20 ($XRP20) presale, which has now raised close to $2 million ahead of its market debut.
SEC Appeal Boosts Uncertainty Around $XRP
As reported by Bloomberg, the SEC is moving to appeal the July court decision from its lawsuit against Ripple Labs, which had ruled that $XRP can’t be classed as a security when sold to retail investors.
In an August 9 letter to Judge Analisa Torres, the presiding judge in the case, the SEC said it believed her decision warrants a fresh look by an appellate court.
“Interlocutory review is warranted here,” wrote the SEC, asking Torres to review her previous ruling.
Unsurprisingly, the prolonged legal proceedings and the looming threat of another extensive battle have cast doubt on XRP, affecting the token’s value.
Until the SEC’s appeal is resolved, the lawsuit remains a talking point among $XRP investors, curbing momentum and causing some investors to liquidate their positions rather than face a prolonged period of uncertainty.
$XRP Technicals Weaken As Bears Take Control
The uncertainty stemming from the SEC’s appeal has manifested in XRP’s recent price action.
After reaching a peak of $0.665 on Wednesday, XRP has erased most of its gains and currently trades at $0.630 – down over 5% in the past 48 hours.
The sell-off intensified after $XRP fell below its 20-day Exponential Moving Average (EMA) on the 4-hour chart, which had previously served as support.
Price also fell below the 50-day EMA and is now testing it as resistance from the other side.
Notably, $XRP’s trading volume has decreased by 41% in the past 24 hours, per CoinMarketCap data.
This drop in volume points to decreased investor interest and reduced trading activity, making $XRP more vulnerable to selling pressure.
Although analyst Travladd Crypto, who has nearly 400,000 followers on Twitter, still believes an $XRP uptrend is “looking nice,” the SEC appeal has undoubtedly taken the wind out of the token’s sails in the short-term.
“Second Chance” Token $XRP20 Builds Presale Steam & Nears $2 Million Raised
As XRP faces familiar regulatory headwinds, a new token called XRP20 ($XRP20) is gaining traction by offering investors a “second chance” to benefit from a project similar to the original $XRP.
The XRP20 presale has raised an impressive $1.9 million so far and is trending toward hitting the $2 million milestone in the coming days.
Dubbed the “next evolution of XRP” by its creators, XRP20 operates on the Ethereum network, offering enhanced features such as staking rewards and a deflationary burn mechanism.
With its presale price at $0.000092, $XRP20 provides an entry point that’s 30 times cheaper than $XRP’s all-time low.
Much of the buzz around XRP20 revolves around the token’s deflationary setup, with a 0.1% transaction burn implemented to reduce the circulating supply over time.
Moreover, XRP20 will boast a fully-fledged staking protocol, with 40% of the token supply set aside for staking rewards.
These features, combined with the early presale traction, have led to significant growth in the XRP20 Telegram channel over the past week.
As XRP’s price remains constrained by regulatory uncertainty, investors looking for a “new XRP” experience appear to be gravitating towards XRP20.
As such, all signs point to a lively DEX debut once the presale concludes.
Disclaimer
This article is sponsored content and does not represent the views or opinions of BeInCrypto. While we adhere to the Trust Project guidelines for unbiased and transparent reporting, this content is created by a third party and is intended for promotional purposes. Readers are advised to verify information independently and consult with a professional before making decisions based on this sponsored content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
