Peter Brandt issued a dire warning amid the Ripple vs SEC drama

The ongoing crypto correction fueled by Wednesday's high-impact news, Ripple Labs-backed XRP has not recovered in the past 24 hours. The large-cap altcoin, with a fully minted value of about $60 billion and an average daily trading volume of about $2 billion, fell 8 percent in the past 24 hours to trade at 60 cents in the early session in New York on Thursday.

However, the Ripple community is celebrating an impressive performance in July with rallies of over 35 percent. Despite a critical weekly close, XRP price has found critical support levels including the weekly 50 and 200 Moving Averages (MAs).

XRP Wales on purchase

According to an on-chain data analysis by Whale Alert, more than $100 million worth of XRP has been moved from Binance to unknown addresses in the past two days.

Whale investors are betting on an inevitable XRP bullish breakout in the near term after a consolidating triangle for the past six years.

Why is XRP winning?

The Ripple community has been awaiting a final decision from Judge Analisa Torres in the ongoing lawsuit filed by the US SEC. In the recent past, the US SEC has dropped a number of cases against crypto projects, including those suggesting that some digital assets are securities.

Meanwhile, the US SEC has already asked the court to pay a fine of 102 million dollars to Ripple for violating security laws for the sale of XRP to institutions.

Cautionary warnings

According to veteran trader Peter Brandt, the XRP community should closely monitor the BTC pair for a Head and Shoulders (H&S) pattern. Having established a neckline support level around 0.0000082 over the past six years, Brandt stated that XRP does not have the potential to bleed further into Bitcoin.

If there is a sustained bearish sentiment for XRP on Bitcoin, Brandt believes a major sell-off could push the pair to 0.00000020.