XRP Social Volume Explodes, Price Dips on News of the SEC Suing Ripple 11

XRP Social Volume Explodes, Price Dips on News of the SEC Suing Ripple

Quick take:

  • Ripple CEO, Brad Garlinghouse, has explained that the SEC plans to sue the company
  • According to Mr. Garlinghouse, the SEC will sue Ripple for issuing an unregistered securities offering
  • XRP’s social volume has since skyrocketed with its value dipping by 21% in the last 48 hours
  • XRP’s $0.45 is holding well with a ‘wait-and-see’ approach advised for traders

Earlier today, the CEO of Ripple, Brad Garlinghouse, announced that the SEC plans to sue the company for issuing an unlicensed securities offering of XRP. According to Mr. Garlinghouse, the lawsuit will be filed by the SEC in the near future with himself and the co-founder of Ripple, Chris Larsen, being named as defendants.

Mr. Garlinghouse went on to call the SEC’s move as being ‘Grinch-worthy’ with Christmas only days away.

It’s not just Grinch-worthy, it’s shocking. It’s an attack on the entire crypto industry and American innovation.

XRP’s Social Volume Skyrockets

XRP’s social volume has since exploded since news broke of a pending lawsuit by the SEC targetting Ripple. According to the team at Santiment feed, XRP investors are also sending their coins to exchanges in a move that hints at panic selling.

As news broke about #Ripple expecting to be sued by the SEC, social volume for $XRP understandably exploded for #crypto‘s #3 market cap asset. There has also been an increase in tokens being moved to exchanges, as prices have dropped -17% the past day.

XRP’s Value Dips by 21% in 48 Hours

As mentioned by the team at Santiment, XRP’s price has been hit hard by the news of the SEC planning to sue Ripple. Before the announcement was made, XRP was consolidating at the $0.57 price level. The remittance coin has since dropped to the $0.45 support zone which is a massive 21% dip in less than 24 hours.

Can $0.45 Hold Once Again?

XRP’s $0.45 price zone has held on two previous occasions. The first, was on the 16th of November, and after XRP posted a two-year high of $0.80. Secondly, XRP bounced at this support zone on the 16th of December and after the Flare Networks snapshot on the 12th of this month.

Therefore, $0.45 might just hold for XRP once again.

However, the current crypto market environment is one of uncertainty brought about by a volatile Bitcoin which has futures and options contracts expiring this week. Furthermore, Christmas is on Friday with trade volume expected to decrease as traders take time off from the market.

XRP bulls are thus advised to be cautious moving forward or watch from the sidelines till the dust settles for the remittance coin.