- XRP has plummeted more than 20% in the last seven days amid disappointment in Trump’s Crypto Reserve.
- The 20-day EMA at $2.41 poses a substantial resistance to the cryptocurrency’s price action.
- With the SEC dropping cases against various crypto firms, the Ripple lawsuit is expected to be dropped soon as well.
XRP investors are eyeing a potential breakout as the token shows increasing momentum. Optimism is building on two fronts: the Ripple SEC legal situation possibly nearing a resolution and Donald Trump’s crypto market-igniting proposals.
Despite a recent pullback, with XRP currently trading around $2.19 after a 21.56% drop over the past week, analysts suggest these factors could set the stage for a significant price rebound.
XRP Price Drops Sharply: Market & Regulatory Issues
On March 2, US President Donald Trump made a strong promise. He said a US Crypto Reserve would make the industry stronger after what he called “corrupt attacks by the Biden administration.”
Trump’s order told the Presidential Working Group to move forward with a Strategic Crypto Reserve. This reserve would include XRP, Solana (SOL), and Cardano (ADA) along with Bitcoin and Ether.
Related: XRP Price Prediction: Volatility Shares Files 3 ETFs — Price Check & Market Analysis
A Letdown for XRP Investors?
At first, Trump’s announcement made people excited. However, the actual details of the reserve let down investors.
Instead of buying new tokens, the reserve was set up to use cryptos the US government already owned. These were mostly cryptos seized from crime cases. This lack of new demand caused a sharp XRP sell-off. The token crashed 5.52% in just one day, CoinMarketCap data shows.
Will Ripple’s Legal Battle Finally End?
The Securities and Exchange Commission (SEC), led by acting Chair Mark Uyeda, has recently stopped many important cases. These included lawsuits against Coinbase, Consensys, Kraken, OpenSea, Uniswap, and Yuga Labs.
However, Ripple’s case is still going on. This is likely because of the example set by Judge Analisa Torres’ ruling in July 2023.
Related: XRP Wallets Mystery: Larsen’s $150M Loss & Dormant Accounts
Ripple Settlement Hopes Grow as SEC Softens Stance
Now that the SEC is not being as aggressive, some think Ripple might soon reach a good deal with the SEC.
Or, they might see a decision that makes XRP’s legal status clear. If this happens, XRP price would likely jump a lot.
XRP Price Analysis: Bearish Now, But Support Levels in Sight
XRP’s price currently looks bearish in the short term. But key technical indicators show possible support levels. Looking at the daily chart below, the Relative Strength Index (RSI) is at 42.91. This means sellers are in control, and the line shows selling pressure is getting stronger.
XRP Nears Key Support Level Around $2: Potential Bounce Zone
Also, XRP price is close to the lower Bollinger Band, which is currently at $1.98. In the past, this level has acted as support.
This suggests XRP price could bounce back if buyers become more active. However, the 20-day Exponential Moving Average (EMA) is at $2.41. This is a strong resistance level for XRP.
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