Connect with us
Active Currencies 14513
Market Cap $2,719,531,302,286.39
Bitcoin Share 49.68%
24h Market Cap Change $0.26

XRP investor sentiment sours ahead of Ripple-SEC verdict – Why?

2min Read

The outcome of the SEC hearing may either send XRP higher or pull it down further.

XRP investor sentiment sours ahead of Ripple-SEC verdict - Why?

Share this article

  • Bullish sentiment around the token dropped as the next briefing neared.
  • Traders preferred to open long XRP positions despite the uncertainty.

Contrary to the rise on the 3rd of May, Ripple’s [XRP] Weighted Sentiment has dropped. At press time, AMBCrypto noticed that the metric fell from 1.16 to 0.64.

While the reading remained positive, the decline indicated that the broader market does not expect XRP to make a bullish move in the coming days. But why?

Will the hearing make or mar XRP?

Our investigation showed that the perception could be linked to a notable event scheduled for the 6th of May. The U.S. SEC is expected to respond to Ripple’s remedy-related opposing brief on the mentioned date.

Over the weekend, there were no updates about the matter. Hence, XRP was able to bank on the $0.49 support and hit $0.52. However, the price could be affected depending on the outcome of Monday’s hearing.

XRP shows a negative sentiment and price falls

Source: Santiment

Previously, the SEC had sought the court’s approval to fine Ripple $2 billion for violating U.S. securities laws in its opening brief. However, the blockchain payment firm opposed the request.

According to Ripple, it would not pay more than $10 million in penalties. While the matter remains unsettled, the judge’s next leaning could leave XRP in a good or bad state.

If the SEC stands its ground on the $10 billion request and the judge favors them, XRP’s price might plummet. But a rejection could help the token’s value rise.

However, it seemed that traders were betting on a positive outcome. This was evident from the Funding Rate data provided by Santiment.

Some participants are confident

As of this writing, XRP’s Funding Rate was 0.008%. If the reading was negative, it would have implied a surge in bearish bets.

However, the positive reading suggests that longs are paying shorts a fee to keep their positions open.

Should XRP’s price increase, these traders would be rewarded for their positions. Alternatively, a plunge in the token’s value could leave longs in the red.

Despite the bullish sentiment of traders, on-chain data showed a decline in network growth. Network growth tracks the number of new addresses making their first transaction.

An increase in the metric suggests improved adoption. Therefore, the decline in XRP’s case implied that the project has not been able to garner enough traction.

XRP traders are bullish on the token

Source: Santiment

If adoption stalls, demand for XRP might be slow. As such, the token might not experience a major upswing. Should the network growth continue to fall, holders of the token might also liquidate some of their holdings.


Realistic or not, here’s XRP’s market cap in BTC terms


In the meantime, Ripple has not commented on their next line of action if the judge aligns with the SEC’s argument.

Whichever way it goes, there is a high chance the lawsuit which has lingered for years might soon come to an end.

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.