The rally, however, did not last long. The price of Ripple’s native token dropped by 7.97% to $0.72 in the following 24 hours, bringing XRP market cap down to $37.9 billion and relegating it back to fifth place among top cryptocurrencies.
XRP’s Legal Battle Ends with Partial Victory, Spurring Market Sentiment
After nearly three years of legal wrangling, the District Court for the Southern District of New York ruled that the offer and sale of XRP on crypto exchanges did not constitute the offer and sale of investment contracts. However, the judge added that the XRP sale to institutional buyers amounted to an investment contract.
While the ruling did not provide the clear-cut decision the industry was anticipating, it was nevertheless viewed by many as a considerable victory amid the ongoing regulatory scrutiny faced by the sector in the US.
XRP, Bitcoin, Ethereum Price Performance. Source: TradingView
The positive news prompted a rise in several cryptocurrencies, including Bitcoin, which reached yearly highs of over $31,800, and Ethereum, surpassing $2,000.
Crypto Market Faces Rough Patch with Nearly $180M in Liquidations
The last 24 hours saw a market-wide correction, with the global crypto market falling by 3.5%. Only two assets in the top 50, Shiba Inu and Optimism increased in value.
Blockchain analytics firm Santiment noted that the market was “experiencing a bit of a hangover” following the significant upturn the crypto market witnessed between June 12 and June 13.
Crypt Market Overview. Source: Santiment
The overall market correction led to massive liquidations for crypto traders, with nearly $180 million liquidated from over 55,000 traders, according to data from Coinglass.
Long-position traders, who had anticipated the upward momentum to persist for an extended period, accounted for most of the liquidations, losing $139.92 million. Bitcoin and Ethereum were the most affected, with the most significant liquidation involving an ETHUSDT position valued at $2.86 million on Binance.
Meanwhile, the XRP market cap lost nearly $20 million during the reporting hours, causing significant losses to traders.