XRP nears two-month low as SEC appeal sparks sell-off

XRP (CRYPTO:XRP), Ripple’s native token, has seen a significant drop of 10%, approaching a two-month low, following the U.S. Securities and Exchange Commission's (SEC) decision to file an appeal against Ripple’s recent legal victory. 

On October 2, the SEC announced its intent to challenge the August 7 ruling, which fined Ripple $125 million but determined that XRP was not inherently a security. 

This development has triggered widespread sell-offs, further fueled by an overall bearish sentiment in the cryptocurrency market. 

The surge in XRP’s trading volume—rising by 5% in the past 24 hours—along with its price decline to $0.53, signals a strong negative sentiment. 

This drop indicates that many investors are liquidating their holdings amid fears of further regulatory pressure. 

According to Santiment data, the token's Relative Strength Index (RSI) has fallen to 39.76, suggesting that XRP is oversold, but there is still significant selling pressure in the market. 

The open interest in XRP, which reflects the number of unsettled futures or options contracts, has also declined by 23% since September 29, further highlighting reduced demand for the altcoin. 

XRP's open interest now stands at $752 million, emphasising diminishing participation in the market. 

If the downward trend continues, XRP could fall below its key support level of $0.51, possibly dropping to a two-month low of $0.46. 

However, if sentiment shifts, a reversal could push the price toward $0.66, potentially invalidating the bearish outlook.

At the time of writing, the XRP price was $0.5231.