Ripple (XRP) Price Dips as SEC Mulls Appeal, But Bulls Still Hopeful

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The XRP market has been witnessing a surge in recent weeks, driven by the groundbreaking ruling in the SEC vs. Ripple lawsuit, which classified XRP primarily as a non-security. However, this decision has sparked a heated debate among legal experts and lawmakers, leaving many pondering its impact on cryptocurrency adoption in the United States and the future of the industry.

Reactions are Mixed

The ruling has not been without its critics, with SDNY District Judge Jed Rakoff rejecting its application to the Terraforms Labs and Do Kwon lawsuit. Judge Rakoff argued that the interpretation of the Howey test may have been flawed in the Ripple case, leading prominent figures like John Reed Stark to predict more rejections of similar cases in the future.

Newsflash: Ripple Decision Already in (Big) Trouble

SDNY District Judge Jed Rakoff today allowed the SEC to go forward with its case against Terraform Labs and founder Do Kwon. In doing so, Judge Rakoff specifically rejected the distinction made in the Ripple case between public… pic.twitter.com/JZZ8vukfFt

— John Reed Stark (@JohnReedStark) July 31, 2023

Impact on XRP

With the possibility of an appeal by the SEC, crypto experts foresee a potential decline in XRP’s trading volume in the near future. Presently trading around 67 cents, the XRP price has experienced a slight dip of over 5.5 percent in the last five days. From a technical perspective, it is imperative for XRP bulls to maintain the current support level to avoid possible drops towards the next supply and demand zone, which lies between 58 and 64 cents.

Despite the uncertainty, there remains hope for a bullish scenario. If the bulls manage to break above the falling trendline of a symmetrical triangle on the weekly and daily timeframes, the XRP price could rally towards a new yearly high.

It’s a Tricky Situation

As the XRP market grapples with uncertainty, investors and traders must stay vigilant and closely monitor legal developments and technical indicators to make informed decisions. The outcome of the SEC’s potential appeal and its implications for XRP’s classification and trading dynamics could significantly shape the future of this digital asset.

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