Following a win against the SEC last month, XRP saw a nice price pump but has since entered a consolidation phase with a downtrend, failing to break above the key $0.80 resistance level.
As noted by prominent crypto analyst Benjamin Cowen, XRP has now completely retraced the entire move higher that came after the positive SEC ruling. Cowen stated on Twitter that legal events like this often don’t have a lasting impact on prices. The prices of altcoins tend to be more so a function of overall market conditions and liquidity than single events like lawsuit outcomes.
The momentum and technicals for XRP currently look weak. The MACD line is below the MACD signal line, pointing to bearish momentum. The RSI is below 45, also signaling a lack of bullish strength. Key support at $0.55 was broken, leading to a test of the $0.45 level. Resistance is seen at $0.68 (prior support turned resistance) and $0.92.
With XRP currently trading around $0.50, these levels could represent a decent long-term entry point for investors who believe in the project’s fundamentals. However, in the short-term, the technical picture remains bearish to neutral absent any positive catalysts.
Adding further uncertainty, on August 17th Judge Analisa Torres approved the SEC’s request to appeal a previous July 13th determination that had ruled XRP was not a security when sold to retail investors. This interlocutory appeal while the case is still ongoing could prolong the lawsuit and weigh on XRP prices. The SEC’s move came after Judge Jed Rakoff in the Terraform Labs case refused to dismiss based on Torres’s prior XRP ruling.
Overall, the legal battle between Ripple and the SEC continues to hang over XRP’s outlook. Traders may want to wait for a technical breakout above $0.68 before turning decisively bullish. But any dips could offer an opportunity for long-term investors who see value in the cryptocurrency’s use cases.
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