The value of XRP rallied after the court declared the token was not a security in the high-profile case between Ripple and the Securities Exchange Commission (SEC). Since the gains, XRP has been unable to make significant progress toward the $1 mark, and market observers suggest the token might experience further drops before recovering.
In a TradingView post on July 28, a crypto analyst using the pseudonym Juicyho expressed skepticism about a rapid XRP surge. The analyst emphasized that the token might not experience a significant rally until it touches the crucial support level of $0.58, with the analyst noting that the hype from the court case might not have a considerable impact.
The analyst identified resistance levels to watch out for, pointing out levels $0.769, $0.785, and $0.98. Among these, $0.785 is considered the most critical resistance level, as indicated by the historical price action on the yearly time frame.
“$0.785 is the real resistance because if you look at the yearly time frame, last year we just consolidated, but this year we did break the inside bar. Within the next 5 month, I would want to see xrp touch .58 cents, and it’ll happen to use it as a support then we will break,” the analyst said.
He laid out a potential scenario for XRP’s price movement, expecting the token to test the $0.58 support level, use it as a springboard, and aim for a breakout above the $0.769 to $0.785 range. Should XRP break and sustain a value above $0.981, it would signal a significant shift in price dynamics, potentially leaving behind the current lower price range.
Impact of SEC case
It is worth noting that despite XRP earning a partial victory in the SEC case, the matter remains a key driver in the valuation of the token. Notably, there is speculation that the SEC might appeal the decision.
As reported by Finbold, the XRP holder’s attorney, John Deaton, suggested that an appeal in the matter cannot be considered a setback for Ripple, citing reasons such as the appeal’s long time frame. This emerged after the SEC faulted the judge’s decision, noting that she erred.
At the same time, Stuart Alderoty, the Chief Legal Officer of Ripple Labs, has expressed strong confidence in the Court of Appeal, reaffirming the District Court’s ruling that XRP is not a security if the US Securities and Exchange Commission (SEC) decides to challenge the decision.
In general, as the SEC case remains in play, the focus is on how XRP will react to the matter.
XRP price analysis
As of press time, XRP was trading at $0.72, with gains of almost 2% in the last 24 hours. However, XRP is down almost 3% in the last seven days.
Elsewhere, XRP’s technical analysis on TradingView has turned bullish for the one-day period. A summary of the gauges recommends ‘buy’ at 14, while moving averages are for ‘strong buy’ at 12. Oscillators are neutral, gauging at 8.
It is worth noting that despite developments in the SEC case, XRP will likely trade in alignment with the general crypto market.
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