XRP fell to $051 only because of the SEC appeal compared to the 2020 70 crash its price could reach $4-6

XRP supporters have observed a remarkable duality in XRP price action following the SEC’s latest legal action.
Last Thursday, the SEC signaled that it would appeal a favorable ruling in the Ripple lawsuit that concluded a few months ago. By Friday, it had made the move official, filing a formal application with the U.S. Court of Appeals.
Thursday’s initial notice shook up the XRP market. This prompted many to sell their XRP tokens, causing the price to plummet.
This massive sell-off also occurred when the U.S. Securities and Exchange Commission initially filed a lawsuit against Ripple in December 2020. However, this time the drop in XRP price due to the SEC’s legal action was relatively minor compared to the past.
XRP price plummets after SEC appeals
On October 2, when news of the SEC’s appeal became public, XRP had reached an intraday high of $0.6058. By October 3, XRP had fallen to $0.5101, a drop of 15.79%.
Interestingly, even after the SEC registered its appeal against Ripple in the Second Circuit court system, XRP’s price has so far recovered from Thursday’s losses. Currently, XRP is trading at $0.5323, up 1.67% over the past day.
XRP price plummets after SEC lawsuit in 2020
In contrast, the 2020 price crash was more severe and lasted for several days. On December 20 of that year, the price of XRP was $0.5678. However, on December 23, after the news of the lawsuit was exposed, XRP plummeted to $0.2214, a sharp drop of 61%.
The price drop became more severe as more exchanges began to delist XRP from their exchanges. By December 29, XRP had fallen to $0.1748, a drop of about 70% from its price of $0.5678. This is the lowest value XRP has ever reached before starting its recovery phase.
XRP could reach $4 or $6
XRP’s resilience in the face of the latest legal action gives supporters confidence that XRP will soon be able to rebound to $6. Marketing expert Bobby A is one of them. In his comments, he warned that the SEC’s appeal notice was a “sell trap” and predicted that XRP would reach $4.23.
Bobby A believes the macro chart remains bullish, noting that selling the news often causes investors to miss out. He tweeted that XRP’s indicators still point to an impending uptrend.
Meanwhile, one analysis suggests that XRP could even rise to $6 in the short term. After hitting a low of $0.17 during the litigation in December 2020, XRP rebounded by 1,021% to $1.96 in April 2021.
Considering XRP’s similar percentage gain during the appeal notice, it could have risen to $5.72 by early January, around $6. However, whether history will repeat itself remains uncertain.
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