Investor sentiment took a hit on August 20 as notable crypto analysts, including Raoul Pal and Max Prime, voiced concerns about XRP’s and ADA’s future. The cryptocurrency’s performance is being closely scrutinized amid ongoing legal challenges and broader market movements.
Let’s explore what’s happening around XRP, and ADA.
On August 20, XRP saw a minor decline of 0.87%, ending the day at $0.5941. This followed a 6.32% rally the day before. Despite briefly reaching $0.6150—a level it hadn’t seen in eleven sessions—the broader crypto market also experienced a downturn, with the total market capitalization dropping by 0.55% to $2.050 trillion.
ADA Price Analysis
In the last 7 days, Cardano (ADA) has lost over 23% of its value, which unfortunately lowered its market cap to $12.12 billion. ADA has faced a severe drop amid the recent market downturn, losing multiple support levels since its peak of $0.8100 on March 14, shortly after Bitcoin’s all-time high. Since then, cryptocurrency has struggled to sustain its gains.
Analyst Criticisms
Raoul Pal, a prominent crypto analyst, recommended avoiding older cryptocurrencies like XRP and ADA, suggesting that these assets might be losing their innovative edge compared to newer projects. His critique was highlighted by Good Morning Crypto, who shared Pal’s perspective that older coins might no longer offer compelling narratives.
Max Prime also weighed in, labeling XRP as one of the biggest scams in the crypto space. Prime pointed out that even after a favorable court ruling, XRP’s price has shown little movement, which has fueled skepticism.
Legal Uncertainty and Crypto Impact
However, XRP’s trajectory towards the $1.00 mark is uncertain due to the potential appeal from the SEC. Ripple and the SEC have 60 days from the final judgment date to file an appeal, and recent trends suggest that the market anticipates such an appeal. Ripple’s Chief Legal Officer, Stuart Alderoty, has indicated that an SEC appeal is likely, citing the agency’s unpredictable behavior in crypto cases.
XRP Price Analysis
Technically, XRP remains above both the 50-day and 200-day EMAs, suggesting bullish signals. A breakout above $0.60 could pave the way for a test of the August 7 high of $0.6434 and potentially drive the price toward the $0.6609 resistance level. Conversely, if XRP falls below the $0.5739 support level, it might test the EMAs.
With a 14-day RSI of 55.73, XRP could rise to the $0.6609 resistance before reaching overbought conditions. Investors should remain vigilant, as legal developments and market news are expected to influence XRP’s price movements in the coming weeks significantly.
Will you continue to invest in XRP and ADA in the present market? Share your thoughts!
