Key Takeaways

• Ripple vs SEC case continues
• Price of XRP is falling, but some positive signs can be seen
• Is the $0.37 target still valid, or can we see a bounce?

While there were some positive outcomes on July 13 when the court ruled in favor of Ripple Labs’ programmatic sales, in the case Ripple Labs vs. Securities and Exchange Commission — namely that its secondary market trading is not deemed as security, the case continues. 

SEC is seeking to file an “interlocutory appeal”  on the ruling of Judge Analisa Torres on this matter, but the Judge still found Ripple Labs guilty on the count of selling unregistered security to institutional investors. 

On the other hand, Stuart Alderoty – the Chief Legal Officer of Ripple, said that SEC doesn’t have the legal ground to do so. 

 

This ongoing battle is of high importance for the cryptocurrency market as a whole, as its rulings and court decisions can then be applied to establish a framework for viewing other cryptocurrencies. 

Meanwhile, the price of Ripple’s XRP token is continuing its downward trend. Since July 14 peak, it has decreased by 37%. Is the excitement over, and are we in for further lows, or can the price bounce? 

Ripple Price Analysis

 As mentioned above, the price has declined from its July peak of $0.93. We have seen a decrease of 37%, measured to its lowest point on August 8 at $0.6. The descending trendline was formed, but now we have seen a minor breakout and some early positive price action, as it recovered to $0.66 on its yesterday’s high. 

If the price has started a downfall of a higher degree, then its first sub-wave has most likely been completed. We will receive a validation shortly, as a minor pullback is being made from yesterday’s high, and if it manages to stay above $0.60, that would mean that the first higher low is made. 

In that case, we could expect to see some at least short-term upside, if not a new uptrend. This can be an ABC correction to the upside following more impulsive downside movements. The MACD indicator shows us that the bullish momentum is present as indicated by the green histogram. The signal line crossed the MACD line on August 6 to the upside, meaning that it, too, indicated the uptrend. 

It is still uncertain if this recovery is going to be short-lived and form a corrective structure or if we can see a decisive move to the upside. But as of now, the bearish scenario looks more likely. A potential price target for the expected increase would be at $0.76, so if the price goes above it, we could see it as a potential sign of a higher uptrend. 

In our previous analysis, we have speculated on the macro projection for the price of Ripple in which we outlined the possibility of its price going to $0.37.

This price target still stands, but until we reach either the first major support point at $0.52 in a descending move or the price going above $0.76, we can’t be certain. 

 

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.