The Californian crypto project Ripple reached a partial victory against the US Securities and Exchange Commission (SEC) in July 2023. Following this development, its XRP coin immediately skyrocketed over 100%, but then dropped to 30% by the end of the month.
Our focus in this article is to delve into the potential growth prospects of Ripple and assess whether we can anticipate further price declines. So, let’s find out what to expect from XPR this last summer’s month of August, taking into account some key considerations.
Important things in our prediction
☝️ Firstly, it is Ripple and SEC fight, which was partially resolved this summer. Back in December 2020, the Commission accused Ripple of issuing and distributing unregistered securities in the form of XRP tokens. The legal proceedings have extended over time, culminating on July 13, when the court gave a nod to XRP’s private sales being legal, while shutting the door on selling tokens to institutional investors.
Notably, the SEC is not just waving the white flag. They are actually planning to appeal, which means the extension of Ripple’s legal battle. Brad Garlinghouse, the leader of the Ripple project, claimed that the SEC's initiative was absurd, asserting that the court’s judgment aligns with legal principles.
In any case, the ongoing battle with the SEC is like a cloud over XPR’s sunny and clear skies. It is a negative element that could exert pressure on the token’s price.
✌️ Secondly, the value of XRP, like many other cryptocurrencies, is tied to the fluctuations of Bitcoin (BTC), the dominant and most capitalized coin in the market.
The orange curve represents Bitcoin’s rate, and the multiple-colored curve demonstrates Ripple's rate. XRP mirrors BTC, though in some periods XRP does not keep up with the leader.
We have already found out that Bitcoin is likely to spend August 2023 in sideways movement. This suggests a lack of substantial growth or significant fluctuations, with the market displaying a period of consolidation. Consequently, Ripple’s potential for robust upward movement is unlikely as well.
🤞 Lastly, the price of XPR is influenced by the influx of news and information. Positive developments could serve as catalysts for growth. Notably, the resolution of the SEC conflict and the successful launch of the Palau state stablecoin (Ripple's inventions are underlying the tool) are instances that could drive positive sentiment and impact XPR’s price trajectory.
XRP August prediction
We asked Dmitry Noskov, a crypto exchange expert from StormGain, to share his insights on XRP's outlook. He identified three serious challenges that could prevent XRP’s growth in August:
💬 "August is likely to be a period of sobriety for investors, as the possibility of an SEC appeal looms. At least, this is what former SEC's Office of Internet Enforcement John Reed Starksuch expected.
The court's endorsement of the nuanced interpretation of XRP, contingent on the buyer's status, is at odds with existing regulations.
Furthermore, Ripple is currently forced to defend itself against accusations of illegally selling securities to institutional investors. A defeat in this legal battle may lead to multi-million dollar fines."
XRP/US dollar chart. The up arrow is the coin's growth amid a partial victory over the SEC. The down arrow shows how deep XRP dropped from the local maximum. As of the time of writing, the token has already dropped by 30%.
We’ve also observed the sentiment within the crypto community regarding XRP’s performance in August. Here are some prevailing forecasts that we’ve come across online:
🧑⚖️ A notable bunch of investors believes that Ripple can resolve its issues with the SEC over the course of August.
📈 Enthusiasts who support the first point expect XRP to rise strongly amid positive news.
👍 Some optimistic projections even envision XRP surging beyond %1, reaching a new local peak.
In essence, the majority of predictions for Ripple’s performance in August lean towards a positive trajectory.
Should you buy XRP?
Amidst the prevailing euphoria, it is important to keep in mind that Ripple is still in danger. The company is positioned for the next phase of its legal fight with the SEC, which implies that XRP remains under pressure, thereby potentially hindering significant growth during August.
The ongoing Ripple and SEC's tussle is likely to persist for an unpredictable amount of time. Without any substantial updates on the legal front, XRP’s price movements might follow Bitcoin's fluctuation. Given the anticipated lateral movement of BTC during the last month of the summer, it looks like XPR is setting up a camp around $0.6-0.7 mark.
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This article is not an investment recommendation. The financial transactions mentioned in the article are not a guide to action. Itez is not responsible for possible risks. The user should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.