XRP Eyes Key Support as Price Nosedives Following US SEC Appeal

• At the time of writing, XRP is trading at $0.5548, down 6.96% in the last 24 hours.
• If the price breaks below $0.54 level, then it will likely test $0.50 support level.

An XRP Spot ETF has been proposed by Bitwise Asset Management, a cryptocurrency fund manager based in the United States. This is seen by Ripple advocates as a major step forward.

The SEC has accused Ripple of generating $1.3 billion via unregistered XRP transactions. And the firm has been involved in continuing legal disputes with the agency. The filing comes during this ongoing legal struggle.

With the recent accumulation of hundreds of millions of XRP tokens by “whales,” market volatility skyrocketed. Concurrent with the submission of a Bitwise ETF application, this accumulation took place. But these preparations were thwarted when the SEC, perhaps unable to wait any longer, chose to appeal the ruling in the Ripple case today.

Intense Selling Pressure

Earlier, after the court determined that sales on the secondary market were not securities, the United States Securities and Exchange Commission (SEC) took a major hit. If the SEC wanted to appeal the decision, they had until October 7th to do so. This latest turn of events implies that the regulator and Ripple’s protracted legal dispute will resume.

At the time of writing, XRP is trading at $0.5548, down 6.96% in the last 24 hours as per data from CMC. Moreover, the trading volume is down 20.68%. The price decline is due to the recent appeal by the SEC, which has caused a negative sentiment among investors.

After failing to cross above $0.66 level on September 29, XRP has been under selling pressure, which has only been intensified by the latest development.

If the price continues to fall and breaks below $0.54 level, then it will likely decline further to test $0.50 support level. However, if the price manages to climb above $0.58, then it will likely test $0.60 resistance level.