XRP’s Fragile Breakout: Analysts Warn of Potential 25% Drop to $1.55
XRP's recent breakout above a descending trendline is showing signs of weakness as the cryptocurrency fails to sustain momentum. After unsuccessful attempts to hold above $2.25, technical analysts are now eyeing critical support levels at $2.01, $1.90, and potentially $1.55—representing a 25% decline from current levels. Derivatives data reveals concerning signals, with rising open interest not translating into price gains, suggesting possible downside pressure ahead. As of July 2025, market observers caution that XRP's fragile technical structure could lead to significant retracement unless bullish catalysts emerge to reverse the trend.
XRP Faces Potential 25% Drop as Analysts Flag Key Support Levels
XRP's recent breakout above a descending trendline appears fragile as the cryptocurrency struggles to maintain momentum. After failing to hold above $2.25, the digital asset now risks testing lower support levels at $2.01, $1.90, and potentially $1.55 according to technical analysts.
Market observers note concerning signals in derivatives data. Rising open interest without corresponding price action—particularly if exceeding 0.02%—could indicate an impending liquidity sweep to the downside. "This shakeout might be necessary fuel for the next major rally," noted one trader, suggesting short-term pain could precede a significant Wave 3 breakout.
The $1.95-$1.88 zone emerges as critical territory for bulls to defend. Daily and 4-hour charts show oversold conditions on RSI and Stochastic indicators, typically preceding either continued selling pressure or trend reversals.
XRP Rebounds From Intraday Lows, Forms Bullish Pattern Above Key Support
XRP staged a sharp recovery after plunging over 6% in a volatile trading session, stabilizing above the critical $2.04 support level. The asset carved a bullish ascending channel following a swift sell-off to $2.011, with traders now eyeing a potential breakout if resistance at $2.09 is decisively breached.
Market fragility persists as global macroeconomic uncertainty weighs on risk assets. Despite broader crypto market liquidations, XRP's fundamentals remain robust—bolstered by institutional interest in potential ETF approvals and Ripple's expanding cross-border payment solutions.
The token's 24-hour price action revealed remarkable resilience, recovering from a low of $2.011 to $2.083 amid heavy trading volume exceeding 163 million units. Technical analysts highlight the formation of a higher low at $2.042 as a potentially constructive development for bullish continuation patterns.
XRP Price Crash Was Predicted! Analyst Now Says $3 Target Is Next
XRP plunged to $1.93 amid geopolitical tensions, precisely hitting the Fibonacci support level forecasted by analyst CasiTrades. The drop coincided with news of U.S. airstrikes in Iran, triggering market-wide volatility.
Technical indicators now suggest a potential reversal. A bullish divergence is forming on the 15-minute and 1-hour RSI charts, signaling weakening selling pressure. The 1-hour trendline has begun sloping upward—a tentative sign of shifting momentum.
CasiTrades maintains a $3 price target, contingent on XRP holding above critical support levels. Market participants remain cautious as geopolitical risks continue influencing crypto asset correlations with traditional markets.
Fact Check: Ripple vs. SEC Case Timeline Clarified Amid Social Media Speculation
Rumors of the Ripple-SEC lawsuit extending to late 2026 gained traction after a viral X post by Altcoin Bale, but legal experts dismiss the claim as exaggerated. The case remains in a procedural holding pattern, with both parties requesting a pause in appeals. A court-mandated SEC status update is due by August 15, 2025—a deadline misconstrued by some as signaling a 2026 resolution.
Ripple's recent supplemental filing, interpreted by attorney Marc Fagel as largely symbolic, aims to address community concerns rather than alter legal strategy. The motion for indicative ruling could accelerate proceedings, though Fagel notes the unprecedented nature of the case complicates timeline predictions. Settlement prospects linger should the court deny Ripple's motion.
Ripple vs. SEC: XRP Nears Final Resolution with Potential Market Impact
The prolonged legal battle between Ripple and the SEC is approaching its conclusion, with significant implications for XRP. A joint motion to pause appeals suggests a settlement may be imminent, potentially dissolving Ripple's injunction and reducing its penalty to $50 million. Market observers interpret this as a decisive victory for Ripple.
All eyes now turn to Judge Torres' expected ruling by August 15, which could formally declare XRP non-security status. Such clarity WOULD likely trigger institutional participation that has remained sidelined during the legal uncertainty.
Concurrently, the prospect of a spot XRP ETF gains momentum, with Bloomberg analysts assigning 95% approval odds. The combination of legal resolution and potential ETF approval creates ideal conditions for XRP's market performance, with analysts anticipating a substantial rally.
Ripple and SEC Legal Battle May Extend Until 2026, Fueling Crypto Market Uncertainty
The protracted legal showdown between Ripple and the U.S. Securities and Exchange Commission shows no signs of resolution, with new speculation suggesting the case could drag into 2026. This development injects fresh volatility into XRP markets and raises broader questions about regulatory clarity for digital assets.
Legal experts remain divided on the timeline. While some anticipate prolonged proceedings due to complex appeals, attorney Bill Morgan counters that 2026 projections may be overstated. The crypto community watches closely as each legal maneuver could significantly impact XRP's valuation and trading patterns across major exchanges.
Market participants face mounting uncertainty as the case's shadow looms over trading strategies. The outcome may set crucial precedents for how regulators approach cryptocurrency securities classifications moving forward.