XRP Struggles to Hold $2 Support Despite Ripple vs. SEC Case Closure

XRP, the cryptocurrency associated with Ripple, has been experiencing a challenging period, struggling to maintain its support level despite positive news that should have provided a bullish push. The fear of a pullback below $2 has become evident, which, while concerning, could also present an opportunity for accumulation.

Just before the end of Q1 2025, the much-anticipated closure of the Ripple vs. SEC case was seen as a significant win for the crypto community. This event was expected to have a substantial positive impact on the XRP price in the long term. However, the price experienced only a short-term positive impact before fading and consolidating around $2.

Following the pullback from $2.5, the price has been struggling to hold the support at $2. If the token breaks below this range, a 25% pullback could be imminent. While the short-term price action shows strong bearish signals, the long-term outlook suggests a potential rebound. The XRP price may continue to consolidate for a while, but a breakout above $3 seems likely before the end of Q2.

The weekly chart of XRP indicates that the price is trading within crucial resistance and support zones, corresponding to the tops of 2018 and 2021, respectively. This range has trapped significant bullish momentum, keeping the price within these levels. The conversion and base lines of the Ichimoku cloud have been acting as immediate resistance and support. With the volume contracting to its maximum, an explosion in price movement may follow soon.

Technical indicators provide a mixed outlook. The MACD shows growing bearish influence, while the RSI is heading towards the lower threshold. However, the DMI and CMF suggest the possibility of a rebound. The ADX has already triggered a rebound, which could further assist the +Di and -Di in undergoing a bullish crossover. The CMF is fluctuating around 0, indicating that both bulls and bears are vigilant and waiting for validation to exert pressure, influenced by market conditions.

Therefore, the possibility of a rise to $3 via the $2.5 resistance remains valid as long as the XRP price holds above $2. A drop to $1.8 may not be considered a bearish move, as a rebound from the 2021 highs could elevate the XRP price to form a new all-time high in 2025.

Regulatory pressures, market sentiment, and technological advancements are key factors influencing XRP's price trajectory. Intensified regulatory scrutiny or the emergence of competitors could lead to a short-term decline in XRP's value. Historical precedent, such as the 90% drop in XRP's price after a regulatory event in February 2018, underscores the potential impact of regulatory actions.

Market sentiment also plays a crucial role. XRP is currently trading near $2.10, with strong resistance at $2.22. A breakout above $3 would significantly change the market structure. However, if bearish sentiment intensifies, a possible correction to $3 may occur. This sentiment is further exacerbated by recent announcements regarding the SEC case, which initially caused XRP to jump to $2.60 but quickly dropped to $2.12, highlighting the sensitivity of XRP's price to market news and sentiment.

Analysts have provided various predictions for XRP's price. One forecast suggests that XRP may show stable momentum near the $4 level in 2027, with a possible correction to $3 if bearish sentiment intensifies. Another prediction suggests that XRP could reach a maximum of $3.77 by the end of 2025, considering its technological utility. However, these predictions are subject to change based on market conditions and regulatory developments.

One analyst predicted that if XRP fails to break $3, it could decline to $1.07, nearly 50% below its current trading level of approximately $2.4. This prediction underscores the potential risks associated with investing in XRP, particularly if it fails to overcome key resistance levels.

In conclusion, XRP's price trajectory is influenced by a combination of regulatory pressures, market sentiment, and technological advancements. While there are optimistic predictions for XRP's price in the coming years, the cryptocurrency faces significant challenges that could impact its value. Investors should carefully consider these factors and the associated risks before making investment decisions.