The value of XRP received a significant boost following the ruling that the token is not a security in the long-standing legal battle between parent company Ripple and the U.S. Securities and Exchange Commission (SEC). However, these gains have since dissipated as the cryptocurrency experienced a notable outflow of capital.
As of August 19, XRP held a market capitalization of $24.66 billion, reflecting an outflow of $18.23 billion from the $42.89 billion recorded on July 14, a day after the SEC case ruling.
XRP market cap chart. Source: CoinMarketCap
In the case, the regulatory body accused Ripple of engaging in an unregistered securities offering through the sale of XRP tokens. The presiding judge delivered a verdict stating that XRP did not meet the criteria for classification as a security. This effectively absolved Ripple from the SEC’s allegations, albeit on a partial basis.
XRP seven-day price chart. Source: Finbold
Meanwhile, XRP is encountering the challenge of navigating the broader market correction and ongoing regulatory uncertainty. Noteworthy, analysts have maintained that the correction is anticipated, indicating that it must test new lows for the asset to rally.
As highlighted by Finbold’s report, a crypto analyst using the pseudonym Juicyho pointed out that the initial excitement around the SEC has waned, and investors should monitor support levels around $0.58.
Significantly, speculation persists that XRP is poised for bullish sentiment, given its positive trading patterns. In this context, the token has exhibited an exceptionally rare golden cross pattern for only the third time, a bullish indicator.
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