The XRP price has been facing a continuous downward trend ever since the US Securities and Exchange Commission (SEC) announced its intention to file for an interlocutory appeal in its case against Ripple. Since Judge Analisa Torres ruled in favor of Ripple, the altcoin has lost all the gains it achieved from the victory. The decline of XRP has led to speculations within the community regarding the reasons behind it, with some questioning whether Ripple is to blame for the price decline.
One recent development that has raised concerns is Ripple’s acquisition of Fortress Trust. Late last week, Ripple Labs announced its acquisition of Fortress, a financial institution heavily involved in the blockchain and Web3 space. The acquisition was seen as a positive move that could further Ripple’s interests in asset tokenization and cross-border payments. However, questions have emerged regarding whether Ripple sold a significant amount of XRP to finance the acquisition.
Bill Morgan, a lawyer, raised this question in response to a tweet stating that Ripple had made Fortress Trust holders whole as part of the deal. Morgan expressed concerns that Ripple may have sold a large amount of XRP, thereby putting downward pressure on the price. However, he also clarified that XRP was not the only cryptocurrency experiencing a price decline during this period. Another user named Moon Lambo argued in favor of Ripple, suggesting that the company already had a substantial amount of cash ($1 billion) in the bank and may not have sold more XRP than normal to finance the acquisition.
Despite these arguments, some users remain unconvinced that Ripple did not sell XRP to fund the acquisition. One user pointed out the worrying performance of XRP compared to Bitcoin and urged others to pay attention to these issues.
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The performance of XRP since the announcement of the Fortress Trust deal supports the concerns raised by the community. While there is a general bearish trend in the market, XRP appears to be worse off than other cryptocurrencies, especially those in the top 10. Bitcoin and Ethereum have been consolidating in a tight range after finding support last week, while XRP continues to decline. This indicates that XRP is facing a significant amount of selling pressure at a time when other similar assets are experiencing seller exhaustion.
Currently, XRP is the worst performer among the top 10 largest cryptocurrencies by market cap, with a 1.6% decline in the last 24 hours. However, there is no concrete evidence to suggest that Ripple is selling tokens, leading to the conclusion that the sell pressure is likely coming from other sources.
It is important to note that the market as a whole is experiencing a challenging period, with many cryptocurrencies facing downward pressure. The ongoing legal battle between Ripple and the SEC has added to the uncertainty surrounding XRP, leading to a loss of confidence among investors. Until the case is resolved and regulatory clarity is achieved, it is likely that XRP will continue to face challenges.
In conclusion, while the recent acquisition of Fortress Trust by Ripple has raised questions about its impact on the XRP price, there is no definitive evidence to suggest that Ripple sold tokens to finance the deal. The decline in XRP’s price can be attributed to various factors, including the overall market trend and the ongoing legal battle with the SEC. As the situation evolves, it is important for investors and the community to closely monitor developments and seek clarity from Ripple and regulatory authorities.
