The cryptocurrency market is witnessing a period of heightened uncertainty, and XRP, the remittance token, is no exception. The upcoming Securities and Exchange Commission (SEC) closed meeting on April 3 has kept the XRP price under consolidation, with the token facing immense selling pressure. The potential vote to withdraw Ripple’s appeal in the SEC’s case has intensified speculation, leaving investors uncertain about the token’s near-term trajectory.
XRP’s Price Movement and Market Sentiment
XRP’s price recently experienced a sharp decline, falling as low as $2.0238 before rebounding by nearly 6%. However, the threat of a deeper retracement remains. Following Ripple CEO Brad Garlinghouse’s announcement and a broader market correction, XRP struggled to sustain a breakout, with its valuation oscillating around $2.1 after breaching the $2.2 resistance on Monday.
With a current market capitalization of $122.3 billion, XRP remains 40% below its all-time high of $3.40. The token has been trading within a narrow range of $2.05 to $2.50, signaling a cautious market stance. Despite a temporary bounce, analysts suggest that further downside is possible, and XRP could dip below the $2 psychological level if bearish momentum persists.
Technical Indicators Highlight Bearish Outlook
Several technical indicators suggest that XRP is vulnerable to further losses. The Relative Strength Index (RSI) sits at 39, below the neutral 50 mark, indicating weak momentum. The Commodity Channel Index (CCI) at -182.70 places XRP in oversold territory, while the Stochastic percent at 11.67% highlights a lack of buying interest.
Moreover, the Awesome Oscillator remains negative at -0.13, reinforcing seller dominance. The Moving Average Convergence Divergence (MACD) at -0.06 signals a clear sell indication, and the Momentum Indicator at -0.31 remains in negative territory. These readings collectively point to a persistent downtrend, raising concerns of a significant price drop.
Potential Scenarios for XRP’s Price Action
Given the current market conditions, two potential scenarios emerge for XRP:
- Bearish Breakdown: If selling pressure intensifies, XRP may break below the critical $2 support level. Such a move could trigger panic selling, pushing the token toward $1.80 or lower. The lack of bullish catalysts and continued regulatory uncertainty may exacerbate this decline.
- Short-Term Recovery Attempt: On the other hand, if XRP manages to hold above $2.05 and witnesses renewed buying interest, a short-term recovery could be possible. Resistance at $2.20 and $2.50 remains key, and breaking above these levels could signal a potential reversal.
Broader Market Factors Influencing XRP
XRP’s price action is not occurring in isolation. Several macroeconomic factors, including recession fears, US labor market instability, and tariff developments, have contributed to market volatility. In addition, Bitcoin’s recent price movements and overall crypto market sentiment play a crucial role in determining XRP’s trajectory.
Another key determinant of XRP’s near-term future is the SEC’s decision regarding Ripple’s appeal. The resolution of the legal battle will have a significant impact on XRP’s regulatory clarity and investor confidence. A favorable decision could spur renewed buying interest, while prolonged legal uncertainty may keep XRP under pressure.
Investor Sentiment and Market Outlook
Despite the current bearish sentiment, some traders believe XRP could find support at $2.05, as suggested by CasiTrades (@CasiTrades). The analyst notes that XRP has tested the 0.786 Fibonacci retracement level and is showing bullish divergences across multiple timeframes. This could indicate a potential bottom formation, at least in the short term.
However, the overall market remains cautious, with many traders closely watching the SEC’s meeting on April 3. If the SEC delays its decision or signals an unfavorable stance, XRP could face another wave of selling pressure.
: A Defining Moment for XRP
As XRP consolidates below key resistance levels, the next few days will be critical in determining its direction. The outcome of the SEC’s meeting will likely play a major role in shaping XRP’s future, either providing a much-needed boost or accelerating its downward trajectory.
Investors should remain cautious and closely monitor technical indicators, market sentiment, and regulatory developments. While a short-term bounce remains possible, the overall technical outlook suggests that XRP is still at risk of further declines. A decisive move above $2.50 could indicate strength, while a drop below $2 could signal a deeper retracement.
For now, the path of least resistance for XRP appears to be downward, and the crypto community eagerly awaits further clarity from regulatory authorities.
