XRP Price Under Pressure: Will Legal Uncertainty or ETF Approval Spark a Surge?

Can Ripple’s XRP Maintain Momentum Amid Legal and Technical Challenges?

XRP-USD has recently been hovering around the $2 mark, facing intense pressure from both macroeconomic factors and technical indicators. XRP-USD has seen volatility increase as concerns about a death cross loom, signaling potential for further price declines. Despite these challenges, XRP has remained resilient, with some technical indicators hinting at the possibility of a recovery. How will the ongoing SEC lawsuit, rising exchange inflows, and potential ETF approval affect the next move for XRP?

Rising Exchange Inflows Could Signal XRP Price Pressure

Recently, XRP experienced a sharp spike in exchange inflows, with over 55 million XRP moved to exchanges this week—nearly doubling the amount seen on April 8. Historically, such movements tend to precede significant sell-offs as traders deposit tokens onto platforms for potential offloading. At the time of writing, XRP-USD was priced at approximately $2.07, down 3.6% over the last 24 hours. While some have argued that XRP is poised for a recovery, $5.1 million in long positions were liquidated within a single day, highlighting the growing bearish sentiment among traders. Will XRP continue to face downward pressure, or can it recover if it holds the $2.00 support?

Legal Uncertainty Weighs Heavily on XRP’s Price Action

The ongoing legal battle between Ripple Labs and the U.S. SEC remains one of the most significant factors impacting XRP's price. Despite a proposed settlement being reached, the final decision still hinges on the SEC commissioners, leaving the market in limbo. This uncertainty has resulted in stagnant market sentiment, with investors awaiting clearer direction. As Kaiko Research noted, key decisions such as the SEC’s response to Grayscale’s XRP spot filing by May 22 will play a crucial role. A favorable resolution could potentially bring significant institutional interest, pushing XRP-USD toward new highs. But, with regulatory delays likely, can XRP stay afloat in such a volatile environment?

Technical Indicators Show Potential for XRP Recovery, But Bears Are Still in Control

From a technical standpoint, XRP is trapped in a narrow range between support at $1.95 (200-day EMA) and resistance at $2.24, marked by the 50-day and 100-day EMAs. A drop below $2.00 would open the door to further downside, possibly targeting $1.61 as the next major support. However, technicals also suggest some bullish momentum. The MACD shows mild buy signals, and the RSI is attempting to break above the midline. But caution is warranted. A 40% decline in trading volume and a 2.75% drop in derivatives open interest suggest that investor confidence is waning. What will it take for XRP to break through its resistance and test new highs, or will the bearish pressure dominate and drag prices lower?

Impact of Global Market Conditions on XRP Price

Ripple’s XRP has been significantly impacted by the broader financial markets, particularly the ongoing U.S.-China trade war. The most recent developments, including Trump’s tariff actions, have caused uncertainty to surge, weighing heavily on risk assets like XRP. Additionally, the overall crypto market has suffered, with Bitcoin (BTC-USD) and Ethereum (ETH-USD) also losing ground. Will XRP continue to track with Bitcoin and other risk assets, or is it more likely to decouple and find its path forward independently?

Long-Term Prospects for XRP Remain Bullish Despite Short-Term Struggles

Despite the short-term technical struggles and legal uncertainties, XRP has strong long-term potential. The Ripple Ledger, which powers XRP, continues to gain traction with financial institutions, and the company’s ongoing efforts to secure ETF approval could provide the boost needed for a sustained rally. Notably, XRP whales are still increasing their holdings, with large wallets accumulating over 20% of the total XRP supply, signaling confidence in XRP’s long-term value. As Ripple positions itself for future growth, XRP’s utility in cross-border payments remains a key selling point for institutions. Is the market underestimating XRP’s ability to maintain its relevance and growth in the years to come?

XRP Price Outlook: Will it Break Above $2.20 or Fall Back to $1.60?

As XRP continues to test the $2.00 support level, the next key development to watch is the ETF approval timeline and any updates in the Ripple lawsuit. Should XRP break above the $2.24 resistance, it could target the next levels at $2.30 and $2.40. However, if it fails to hold above $2.00, a retest of $1.61 is likely. The growing uncertainty surrounding both legal and macroeconomic factors leaves XRP vulnerable, but bullish traders remain hopeful that a favorable resolution will push the price back into the $3.00 range in the medium term.

Key Indicators to Watch for XRP in 2025

• $2.00 support: Will it hold, or will XRP fall below to $1.61?

• $2.24 resistance: A critical hurdle for XRP to break in order to confirm a bullish rally.

• MACD buy signal: Potential for further price appreciation if momentum continues.

• ETF approval: Could unlock institutional capital and drive XRP higher.

• Legal clarity: Any positive update from the SEC lawsuit could provide a strong catalyst for price recovery.

Final Verdict: XRP is at a crossroads—bulls are holding onto hope as the market waits for legal resolution, but bearish indicators remain significant. The $2.00 support level is critical, and any move below that could signal further downside. However, the institutional interest and Ripple’s future outlook still hold promising potential, making XRP a potential buy for those willing to ride out the volatility.

That's TradingNEWS