Despite some seemingly positive news published recently about the SEC, the price of Ripple (XRP) continues to fall.
Victory against the SEC has not helped the price of Ripple
Right now it appears to have lost almost 2% since yesterday, 12.5% since a week ago, 25% since a month ago, and even 53% since a year ago.
Compared to the all-time highs of January 2018, the loss is 81%.
But why does the price continue to fall despite the seemingly positive news?
First of all, it is worth mentioning that the recent news made public regarding the progress of the SEC case against Ripple seems to look positive, but it is not necessarily so.
In fact, the news is largely made up of information released by Ripple, and is therefore biased. According to the company’s interpretation, the lawsuit is on its way to a victory for Ripple over the SEC, but the reality is that there are no clear and obvious signs that this is the case.
On the contrary, Ripple has been claiming for more than a year now that the lawsuit is coming to a successful conclusion for them, while the SEC is not issuing any such statement.
Therefore, it is possible that the idea one might have about it may not be objective, but strongly influenced by Ripple’s partial communication and the SEC’s minimal communication.
Moreover, it should be added that the price of XRP is by no means only influenced by the possible outcome of the ongoing lawsuit. Given that the case seems to have been in a stalemate for several months, this may actually have a minimal impact on the price of XRP.
Price evolution during the lawsuit
It is enough to consider that in mid-April, when Ripple claimed to have won a major victory against the SEC, the price of XRP reacted by only going from $0.71 to $0.78. Three days later it was already back to $0.73, and the following week it was also back to $0.71.
It is now at $0.64, well below the level it was at before the announcement of the apparent big win.
However, if we extend the analysis to the past months, starting from the moment the lawsuit began (November 2020), we see that the trading volume on the exchanges has literally plummeted over time, from $13.6 billion to just over 2, a reduction of 80%.
The problem may not only be due to a loss of appeal of XRP, but also and more importantly to the huge growth in appeal of other entities, primarily Solana and Terra which have surpassed or approached XRP in terms of market capitalization during 2021.
Not to mention the boom of Dogecoin or Shiba Inu, which have certainly shifted the interest of the masses.
For example, the volume of daily Google searches for Ripple or XRP is currently at its lowest, with XRP down 84% in the last 12 months.
Indeed, from the Google Trends chart it is clear that there has been a collapse since the second half of May 2021, i.e. due to the collapse of the crypto markets because of the new Chinese ban.
Since then XRP has not been able to recover.
So on the one hand the SEC lawsuit has had serious consequences in the long term, on the other hand the competition has distracted attention from this project, and on the other hand the positive news that is circulating is only in appearance.
It remains to be seen, however, how it might react if genuinely and objectively positive news were to be released instead.