XRP Shows Positive Sentiment Amid SEC Ruling Winding UP

On August 7, 2024, the final ruling in the SEC vs. Ripple lawsuit boosted the XRP price by 18.54%, following the 3.58% jump during the ruling’s hype. Despite the $125 Million fine, the community and HODLers of XRP took the ruling with a positive sentiment. 

In contrast to the positive sentiments, Bill Morgan, a pro-crypto lawyer, finds the decision favoring the regulators, the SEC. Morgan’s point of view is that the ruling will help the SEC discover beneficial insights within the project that could potentially have future implications. 

Morgan even points out the approach taken by the standing Judge in the SEC vs. XRP case, Judge Analisa Torres. The approach remains similar to the other cases that the SEC had filed against Kraken and Binance. The simple approach of comparing primary and secondary market sales could lead to further appeals. It makes no distinction between buyers purchasing directly from an issuer and those who buy in the secondary market.

As of now, the XRP community, holders, and even traders are closely watching for any signs of an appeal from the SEC in the matter. Amid the growingly volatile and harsh market conditions, an appeal could lead to massive fluctuations in the XRP price. 

Will XRP drop under 200-day EMA? 

With a quick recovery in Q3 2024, the XRP price is back above the $0.50 psychological barrier. However, the resistance trendline remains intact, and a triangle is formed with the new support trendline. 

 Source: https://www.tradingview.com/x/MbvOKUHk/

With a golden crossover, the EMAs maintain a BUY signal. However, the recent 3-day drop of 7.60% puts the 50% Fibonacci level at $0.57 at risk. Further, XRP tests the support trendline and warns of a breakdown. 

Under such conditions, an appeal could result in a breakdown run to the $0.49 mark or the 38.20% Fibonacci level, a 14% drop. 

On the contrary, with an extension, it is possible for the morning star chances with the intraday growth of 0.80% and the Doji candle last night. A bull run within the pattern will challenge the trendline at $0.61.