The Ripple price (XRP/USD) has seen a rebound after tumbling below the $0.80 level earlier in the session.
The third-largest cryptocurrency on the market had a lacklustre session on Tuesday, falling to an eight-day-low for $0.803, from an opening price of $0.833. Still, the cryptocurrency managed to defend the $0.80 level, finishing the session at $0.813.
The cryptocurrency saw another sharp decline in the early hours of today’s trading, with its price tumbling to $0.770, its lowest level since April 19, according to data from crypto tracker Coinmarketcap. The cryptocurrency has since managed to recover much of the early losses and is currently trading at around $0.80.
Ripple’s recent struggles come as the wider cryptocurrency market experience similar problems. Most major digital coin, including yesterday’s best performer, IOTA, have seen significant losses over the most recent 24-hour period. Ripple’s performance may have been additionally hindered following reports that a class action lawsuit has been recently launched against the San Francisco-based start-up behind the cryptocurrency.
Finance Magnates yesterday reported that the lawsuit, which was filed on May 3 by plaintiff Ryan Coffey, accused the company of unregistered offer and sale of securities, with Coffey claiming that XRP is a unregistered security which is being used to raise “hundreds of millions of dollars”. The plaintiff, who reportedly purchased 650 XRP tokens for roughly $2.60 each in early January, also claims that the token is not related to Ripple’s other products.
“While publicly touting its xCurrent, xRapid, and xVia enterprise solutions (collectively, “Ripple Enterprise Solutions”), Ripple Labs’ primary source of income is, and has been, the sale of XRP. Defendants earned over $342.8 million through XRP sales in the last year alone—XRP which costs Defendants nothing since they created it out of thin air,” the court documents read.
Earlier today, the Finance Magnates published a separate report, informing that shareholder rights law firm Johson Fistel was reportedly “investigating potential claims against Ripple Labs”.
In today’s trading, the Ripple price stood at $0.807, as of 13:24 BST. The cryptocurrency has lost 0.6% of its value in the past 24 hours.
For further information on how to buy and trade Ripple, see our comprehensive Ripple guide.