XRP News Today: XRP Drops 6.5% Despite Bullish Catalysts, Legal Uncertainty Persists

XRP, the cryptocurrency associated with Ripple, has experienced a 6.5% decline over the past three days despite several bullish catalysts. These catalysts include the integration of USDC on the XRP Ledger and the upcoming launch of the XRPL EVM mainnet, scheduled for the second quarter of 2025. The XRPL EVM launch is expected to introduce Ethereum-compatible smart contracts, significantly enhancing the ecosystem's capabilities.

Technical indicators suggest early signs of a momentum reversal for XRP. The Relative Strength Index (RSI) has climbed to 43.56 from a recent low of 28.24, indicating a move out of oversold conditions. The Average Directional Index (ADX) has also increased to 26.47 from 18.84, surpassing the 25 threshold that often marks the emergence of a strong trend. The positive directional index (+DI) has risen from 10.56 to 15.57, while the negative directional index (-DI) has dropped sharply from 36.77 to 23. This crossover suggests growing bullish momentum as bearish pressure diminishes.

However, despite these positive momentum indicators, XRP's Exponential Moving Averages (EMAs) remain bearish, with short-term averages positioned below longer-term ones. This reflects the prevailing downward pressure on the cryptocurrency. XRP is currently trading below the critical resistance level of $2.28, and a successful break above this level could pave the way for further gains toward the next resistance target near $2.33. Conversely, failure to surpass this resistance may trigger a correction, potentially driving XRP back toward the $2.05 support zone.

Ripple's final opportunity to settle its lawsuit with the SEC ends on Monday. Failure to reach an agreement could extend XRP’s legal challenges into 2026. Following a failed motion in May, Ripple submitted a revised appeal aimed at overturning a pivotal securities ruling. However, legal analysts remain skeptical about the motion’s prospects, citing a lack of substantive arguments to sway Judge Torres’ original decision. If the motion is denied, Ripple could face an extended prohibition on retail securities sales, potentially prolonging the lawsuit into 2026. This legal uncertainty continues to weigh heavily on XRP’s short-term price dynamics despite favorable regulatory and infrastructural developments.

Despite the legal uncertainties, several firms have increased their XRP reserves, signaling growing institutional interest. Circle’s announcement of native USDC integration on the XRPL further strengthens XRP’s utility, fostering deeper institutional adoption and expanding use cases in decentralized finance, payments, and cross-border settlements. These developments suggest that XRP has the potential for significant growth in the future, but the outcome of the SEC settlement deadline and the ability to break above the $2.28 resistance level will be critical in shaping XRP’s near-term trajectory.