XRP Tumbles 4% After Ripple’s Legal Blow – Is a Deeper Crash Coming?

Ripple's courtroom stumble sends XRP into a tailspin—just another day in crypto's legal circus.

Price pressure mounts as traders brace for more volatility. Will the SEC's latest jab trigger a full-blown selloff?

Pro tip: When your 'decentralized' asset moves 4% on regulatory news, maybe it's not so decentralized after all.

XRP Chart Prints Another Lower High, Bears in Control

According to data from GeckoTerminal, XRP formed another lower high on the daily chart, extending a negative trend line that has been weighing on the cryptocurrency for the past two weeks. This pattern reflects growing bearish sentiment and suggests further downside risk unless the trend is broken.

Currently, XRP is holding just above a key support level at $2.0904. If the price breaks below this threshold in the next 24 to 48 hours, the next major support level sits at around $1.9734—a previous low that could be tested again if bearish momentum continues.

Upside Potential Hinges on Resistance at $2.23

Despite the legal setback, some traders see the current xrp price as a potential buying opportunity. If bulls regain control and push the price above the descending trend line near $2.2302, a more optimistic scenario could unfold.

Breaking above this resistance WOULD mark a significant technical shift and may allow XRP to climb toward $2.36. However, such a move would require strong buying volume and renewed confidence, both of which remain uncertain amid the legal cloud surrounding Ripple.

MACD and RSI Signal Weakening Bullish Momentum

Technical indicators suggest that XRP’s recent slide could continue heading into the weekend. The Moving Average Convergence Divergence (MACD) indicator is showing signs of weakness. The MACD line has stopped diverging from the signal line and is beginning to converge, indicating that bullish momentum is fading.

If the MACD line crosses below the signal line, it would confirm a bearish crossover, likely signaling a continuation of the downtrend.

In addition, the Relative Strength Index (RSI) has declined over the past two days, indicating rising selling pressure. This drop in RSI, combined with lower buying volume, paints a cautious short-term picture for XRP.

$2.09 Support Is Crucial in the Short Term

XRP is now in a precarious position, clinging to support at $2.09. A confirmed break below this level could trigger a retest of $1.97, and potentially $1.90, if selling intensifies. These zones are crucial for bulls to defend, as falling below them could invite further downside and erode much of XRP’s recent gains.

However, if XRP holds this support and sentiment stabilizes, short-term recovery is still possible. A reversal would depend heavily on broader market conditions and any new legal developments in the Ripple-SEC case.

Legal Uncertainty Weighs on Market Sentiment

The denial of the Ripple-SEC joint request has reintroduced regulatory uncertainty into the XRP ecosystem. The unresolved classification of XRP’s past institutional sales as securities could have longer-term implications for Ripple’s business and token utility.

While the court’s decision doesn’t impact retail trading directly, it reinforces the perception that regulatory clarity is still lacking in the U.S. crypto space. Until a final ruling is made or legislation provides clearer guidance, XRP could continue to face legal-driven volatility.

Final Thoughts: XRP’s Future Hinges on Legal Clarity

XRP’s recent 4% decline highlights the crypto market’s sensitivity to regulatory developments. While technical indicators suggest bearish momentum could persist in the short term, support at $2.09 remains a critical level to watch. A drop below this point could deepen the downtrend, while a recovery above $2.23 might shift momentum back to the bulls.

For now, traders should remain cautious, monitoring both price action and legal news closely, as Ripple’s courtroom battles continue to influence the fate of XRP.