While the token’s value briefly spiked following its long-awaited legal victory against the U.S. Securities and Exchange Commission (SEC), signs of weakening fundamentals suggest that gains could prove temporary.

Sentiment Shaken Despite Legal Win

The SEC’s case against Ripple officially ended on August 7, 2025, a landmark outcome many expected to fuel long-term momentum. Instead, on-chain data paints a different picture. According to CryptoQuant analyst CryptoOnchain, daily active addresses dropped by over 10% to around 24,700 shortly after the ruling.

The decline highlights a concerning trend: instead of attracting new participants, the rally appears driven mainly by existing holders repositioning. Without a fresh wave of retail adoption, analysts fear XRP’s price could struggle to maintain its upward trajectory.

Bold Predictions Clash With Market Reality

Amid the price excitement, some voices in the industry have issued lofty forecasts. Black Swan Capitalist co-founder Versan Aljarrah recently argued that XRP could eventually underpin global financial infrastructure, setting $1,000 as the “floor, not the ceiling.” Others, like crypto investor Jake Claver, backed similar views with mathematical models tied to institutional liquidity flows.

Yet many market participants remain skeptical. Reddit discussions on r/XRP reflect doubts over such extreme projections, with one trader warning that a meteoric price rise would create too many instant millionaires, making it unlikely to be allowed by financial elites.

Exchange Data Suggests Profit-Taking

Another red flag comes from major trading platforms. Following the SEC verdict, centralized exchanges saw significant spikes in XRP deposits — a common indicator of profit-taking. Binance in particular has rapidly built up reserves, while OKX holds a comparatively small allocation. This uneven distribution increases risks of concentrated liquidity and short-term volatility.

Technical Signals Point to Fragility

While XRP still shows pockets of bullish interest, technical indicators point toward caution. Rising exchange reserves historically precede corrections, especially when coupled with declining user activity. Analysts warn that this mismatch — prices climbing while network participation falls — creates an unstable foundation for sustained growth.

Market experts note that any meaningful long-term rally will require broader adoption and reduced reliance on speculative flows from a handful of whales and treasury accounts. Until then, volatility is likely to dominate XRP’s price action.

Outlook for the Next XRP Move

For XRP to mount a sustainable breakout, analysts argue two key conditions must be met: growth in real-world utility adoption and a more even distribution of supply across exchanges. Without these, the next price jump could be just another short-lived surge, leaving investors questioning how much staying power XRP truly has in the current market.

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The post XRP Price Jump Sparks Warnings – Analysts Say Rally May Not Last appeared first on Coindoo.

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Filed under: Bitcoin - @ August 17, 2025 12:01 pm