NAIROBI (CoinChapter.com) — The SEC vs Ripple lawsuit continues to overshadow Ripple’s recent court win, casting doubts on XRP’s future. The court ruling, which imposed a $125 million fine on Ripple, has entered a critical phase with the SEC given a 60-day window to appeal. This delay has added uncertainty, holding back potential gains for XRP.
Crypto analyst Raoul Pal suggests XRP, like ADA, may be losing its innovative edge. Max Prime, another figure in the crypto space, labeled XRP as “the biggest scam in crypto,” further reducing investor confidence.
Appeal Window Cast a Shadow Over XRP’s Path to $1.00
On Aug. 7, XRP briefly reached $0.6434 following the court ruling. However, the possibility of an SEC appeal quickly pulled prices back. Ripple and the SEC have a 60-day window to appeal, a move Ripple’s Chief Legal Officer, Stuart Alderoty, indicated would not be surprising given the SEC’s history with crypto cases.
For XRP bulls, the path to the coveted $1.00 mark remains challenging, with the uncertainty of this lengthy appeal window looming over the market.
Additionally, the potential approval of a U.S. XRP-spot ETF could offer support, though this also hinges on regulatory developments. While Ripple’s efforts to enhance the XRP Ledger, including the reset of the XRPL testnet to reduce costs, may play a role in shaping XRP’s future, the legal uncertainty remains a significant hurdle.
Notably, social media commentator Nebraskangooner highlighted that XRP is “assaulting this upper channel resistance but still no success at breaking,” advising traders to wait for a breakout before considering an upside move.
XRP Stalls Below $0.60: Can Bulls Overcome Mounting Pressure?
As of Aug. 21, XRP USD trades around $0.5986, with repeated attempts to push past this level stalling. The ongoing SEC vs. Ripple lawsuit continues to weigh on market sentiment, adding to the uncertainty.
The price action positions XRP within a descending triangle pattern that has been forming since 2018. This technical setup suggests a critical point, where a breakout above resistance could signal a bullish move, while a failure to do so may lead to further declines.
On-chain metrics show a negative MVRV Long/Short Difference, indicating that many XRP holders are currently at a loss. This suggests continued selling pressure, especially if key resistance levels are not breached.
The immediate resistance is the upper boundary of the descending triangle, with crucial targets at the 1.618 Fibonacci extension ($1.03045) and the 2.618 extension ($1.44379). However, a failure to break these levels could lead to a decline towards the support line at $0.35167.
