- XRP’s price has recently dipped due to ongoing legal uncertainties with the SEC and negative commentary from crypto experts.
- The cryptocurrency’s future largely hinges on whether the SEC will appeal Ripple’s recent court victory and potential market developments like a US XRP-spot ETF.
On Tuesday, August 20, XRP experienced a slight dip of 0.87%, closing at $0.5941. This decline partially reversed a previous day’s rally of 6.32%, when XRP briefly touched $0.6150—its highest level in eleven sessions. The broader crypto market also saw losses, with the total market cap falling by 0.55% to $2.050 trillion. This downturn comes amidst ongoing uncertainty regarding Ripple’s legal battles with the SEC.
Investor Sentiment Wanes Amid Criticism
Crypto experts Raoul Pal and Max Prime have recently voiced concerns that have weighed heavily on investor sentiment. Pal, in a discussion shared by Good Morning Crypto, cautioned against investing in older coins like XRP and ADA. He suggested that these projects might have lost their innovative edge in the rapidly evolving blockchain space. Meanwhile, Max Prime criticized XRP, labeling it as potentially the biggest scam in crypto. According to Prime, even if Ripple wins its lawsuit against the SEC, XRP’s price may remain stagnant.
Despite this pessimism, Ripple’s Chief Legal Officer, Stuart Alderoty, remains hopeful. He mentioned in an interview with CryptoLaw that although an SEC appeal is possible, it would be illogical for the SEC to pursue it. However, given the SEC’s unpredictable behavior with crypto cases, an appeal remains a significant concern.
Navigating the Path Forward
For XRP to reach the $1.00 mark, several factors are at play. The SEC’s decision to appeal or not could dramatically impact XRP’s trajectory. If the SEC decides not to appeal, XRP might aim for the July 2023 high of $0.9327. On the other hand, an appeal could push XRP below $0.40.
Moreover, potential developments such as a US XRP-spot ETF and Ripple’s RL USD stablecoin could play crucial roles in driving XRP’s price upward. Current technical indicators suggest that XRP is poised for potential gains, with a breakout from the $0.60 level supporting a return to the August 7 high of $0.6434. Further movement beyond this could test the $0.6609 resistance level.
XRP remains above the 50-day and 200-day EMAs, indicating bullish signals. The 14-day RSI is at 55.73, suggesting room for growth towards the $0.6609 resistance level before hitting overbought conditions. Conversely, a drop below the $0.5739 support level could bring the 50-day and 200-day EMAs back into play.
As Ripple’s legal and regulatory challenges continue to unfold, staying informed about these developments will be crucial for managing exposure to XRP and the broader crypto market
