Escalating geopolitical tensions are further pushing traders toward safe-haven assets, amplifying XRP's sell-off.

XRP (XRP) plummeted by approximately 12.75% in the last 24 hours, reaching a one-month low of $0.511 on Oct. 3. Traders started selling their XRP holdings after the United States Securities and Exchange Commission's (SEC) appeal in its lawsuit against Ripple and due to escalating tensions in the Middle East.

On Oct. 2, the SEC filed a notice of appeal challenging Judge Analisa Torres' 2023 ruling that secondary sales of XRP were not securities transactions. In other words, XRP did not meet the criteria for classification as a security under the Howey test.