SEC Crackdown Affects XRP Price Amid Market Volatility

Key Points:

• XRP sunk below the $0.50 level to as low as $0.44 in a volatile market. 
• XRP is feeling the pressure of the broader market, with Bitcoin falling below $30,000. 
• SEC Chairman blames crypto for SVB’s failure. 

The XPR price has not gone unscathed from the pressure of the broader cryptocurrency market, plunging below the psychologically important $0.50 threshold to as low as $0.44. 

The No. 6 crypto is attempting to recover and has managed to climb back up to the $0.46 level. XRP bulls are holding their ground and consider the latest setback to represent a buying opportunity. They are questioning why XRP is in the doldrums considering it has managed to trade independently of Bitcoin for much of this year.

The volatile markets have sent XRP down nearly 10% in the past week, giving XRP bulls an opportunity to buy more of their favorite crypto at what they consider to be a discount. 

A wide regulatory crackdown on the industry led by US SEC Chairman Gary Gensler has taken its toll. 

Bitcoin has also fallen into bearish territory as the price sinks below $30,000 to the $27,000 area. It has similarly climbed higher from a low of $27,169 over the weekend to $27,872 on Saturday. 

XRP remains heavily traded on Kucoin, where it is in the No. 2 spot on a volume of $15 million. Total XRP trading volume currently hovers at $852 million. 

Ripple CTO Weighs In on Pre-Funding Model 

Ripple CTO David Schwartz in a Twitter thread revealed Ripple’s pre-funding strategy on XRP amid a debate that was unfolding. He shared that instead of pre-funding in every market in which you’re making a payment, pre-fund in a single account and direct payments to any on-demand liquidity destination market instead. 

Gensler Blames Crypto for SVB’s Failure 

As the SEC case against Ripple continues to linger, XRP investors are anxiously waiting for an expected favorable outcome. In the meantime, SEC Chairman Gary Gensler continued to take aim at digital assets. 

In testimony before Congress last week, he blamed cryptocurrencies for the failure of Silicon Valley Bank (SVB), which was founded in 1983.  However, he was rebuffed by the superintendent of the NY Department of Financial Services, Adrienne Harris, who called Gensler’s theory that SVB’s failure was linked to crypto a “misnomer.”