In a significant development for Ripple and its token XRP, the U.S. Securities and Exchange Commission (SEC) has officially decided to drop its appeal in the ongoing legal battle with Ripple Labs. CEO Brad Garlinghouse confirmed the news and hailed the decision as a major victory for Ripple. This announcement led to a surge in XRP’s price, rising by over 10% and reaching a peak of $2.57. However, the initial excitement was short-lived, and the price has now stabilized at $2.47 as the market adjusts.
According to analyst Josh from Crypto World, XRP is currently experiencing a bearish divergence on the 3-day time frame. This trend has been persisting for several months, indicating limited bullish momentum. While there may be occasional short-term bullish movements in the price, the overall technical outlook suggests that XRP is unlikely to experience significant upward momentum in the near future.
Short-Term Positive Price Action: A Bounce from Key Support
XRP has successfully rebounded from a previous resistance level and turned it into a new support level. This positive price structure suggests a potential short-term recovery in the market. The key support zone for XRP is between $2.25 and $2.30, and the fact that XRP has held this level and bounced from it indicates some stability in the short-term outlook.
Resistance Levels to Watch
As XRP moves higher, the next resistance levels to monitor are in the range of $2.60 to $2.80. Previous resistance levels within this range are likely to exert downward pressure on the price. Specifically, the $2.65 and $2.80 levels will be crucial in determining whether XRP can sustain its momentum beyond this point. If XRP manages to break through these resistance zones, the $3 mark could be the next significant hurdle.
RSI Indicator: Potential Overbought Conditions Ahead?
The Relative Strength Index (RSI) is a key tool to watch during this rally. The RSI is approaching overbought levels, suggesting that XRP may be nearing its short-term peak. Historically, when the RSI reaches these levels, it often precedes a minor price decline. While there may still be room for XRP to rise, the increasing RSI could indicate that the price is approaching a resistance point, potentially leading to a cooling off period.
Bitcoin’s Influence on XRP Price Movement
XRP’s price movement is closely correlated with Bitcoin’s performance. If Bitcoin continues to show bullish momentum, XRP is likely to follow suit with positive price action. Conversely, if Bitcoin experiences a downturn, XRP may also face downward pressure.
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FAQs
Is the SEC and Ripple case over?
The SEC dropping its appeal signifies a significant victory for Ripple.
What is the XRP price prediction for 2030?
By 2030, XRP could trade between $16.92 and $26.97, driven by institutional adoption, CBDC development, and Ripple’s expansion in global payments.
What is the XRP price prediction for 2040?
XRP’s price may reach $178.82 by 2040, assuming widespread adoption, strong regulatory support, and Ripple’s continued dominance in cross-border payments.
