Investor uncertainty around XRP ($XRP) is ramping up again, with the token’s value dropping 4% since August 9.
This uncertainty has been prompted by the SEC’s decision to appeal Ripple’s recent legal victory, hinting that the back-and-forth between the two entities could be set to resume.
However, the excitement around the new XRP20 ($XRP20) token continues to build – with the project’s presale now nearing the $2 million milestone.
Recent Price Action Hints at Trend Reversal for $XRP
$XRP had been enjoying a sharp reversal until Wednesday morning, with the price soaring 11% after experiencing an extended downtrend in the previous weeks.
After topping at $0.665, the price turned back – falling 4% to $0.632, where it trades today.
This turnaround coincides with $XRP’s price tapping the 20-day Exponential Moving Average (EMA), hinting that it could be acting as a minor resistance level.
Price is now hovering just above the 50-day EMA. This means it’s essentially trapped in a range between the two indicators.
The Relative Strength Index (RSI) has dropped to a value of 44 on the daily timeframe, further showcasing the recent bearish momentum.
Notably, $XRP’s 24-hour trading volume has also sunk by 35%, according to data from CoinMarketCap.
The decreasing interest in the token may suggest that speculative crypto investors are seeking other options due to ongoing regulatory uncertainty.
SEC Appeal Reintroduces Uncertainty as Ripple Legal Battle Resumes
The uncertainty around $XRP stems from the SEC’s decision to appeal a ruling in its long-running lawsuit against Ripple Labs.
Back in July, Judge Analisa Torres delivered a partial victory to Ripple when she ruled that $XRP is not a security in the context of retail trader offerings.
However, as reported by Fortune.com, the SEC is now set to appeal this decision.
Unsurprisingly, this brought back much of the uncertainty surrounding $XRP before Torres’ initial decision, dampening investor enthusiasm and demand.
With the SEC intent on continuing the legal battle, $XRP holders could face another extended period of doubts around the token’s status.
The good news for these holders is that pro-Ripple attorney John Deaton tweeted that he’s willing to bet “significant funds” that Torres’ decision does not get overturned on appeal.
Regardless, the lingering uncertainty poses short-term headwinds for $XRP, even as longer-term optimism still exists within the investor base.
Rising Presale Traction & Clean Audit Build Excitement for Trending XRP20 Token
With uncertainty swirling around $XRP, the developers behind a new token called XRP20 ($XRP20) aim to make their mark on the crypto landscape.
The recently launched XRP20 presale has seen impressive early traction, raising over $1.9 million.
Branded by the developers as “the next evolution of XRP,” XRP20 aims to tap into crypto investor nostalgia and offer a “second chance” to those who missed out on the original $XRP’s 2017 bull run.
With less than half of the allotted presale tokens remaining, the buzz around XRP20 is intensifying as investors rush to get involved at the low price of $0.000092 – 30 times cheaper than $XRP’s all-time low.
As noted in XRP20’s whitepaper, once this presale concludes, the token will be launched on a DEX – with 10% of the total token supply used to boost liquidity for traders.
Moreover, the XRP20 project recently underwent a comprehensive smart contract audit conducted by blockchain security firm 0xGuard.
No high-risk vulnerabilities were noted in the audit, providing assurances to early investors regarding the safety of XRP20.
As the presale heads towards its $3.68 million hard cap, numerous crypto influencers are taking note, with YouTuber Michael Wrubel uploading a video detailing how optimistic he is about $XRP20’s prospects.
If XRP20’s momentum continues at this pace, there’s no doubt it’s a token to monitor closely ahead of its open market debut.
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