XRP Drops 37% Despite SEC Lawsuit Resolution, ETF Hopes Remain

XRP, the digital asset associated with Ripple, has experienced a significant decline, with its price dropping from $3.40 to around $2, marking a 37% decrease. This sharp decline has raised concerns among investors about the asset's ability to maintain its value or potentially fall further. Despite the resolution of a long-running SEC lawsuit, which cleared regulatory uncertainty and allowed Ripple to expand its partnerships across the U.S. financial sector, uncertainty persists regarding XRP’s short-term outlook.

Ask Aime: What's the outlook for XRP after the SEC lawsuit?

Several firms have filed for a spot XRP ETF, with some estimating the odds of approval at 85%. This approval could be a turning point for XRP, potentially increasing institutional inflows and creating upward pressure on the token’s price. However, factors such as U.S. tariffs and inflation concerns continue to complicate the impact of any positive developments for XRP. As these projects gain traction, they could help XRP secure a strong position in the market.

Ask Aime: What do investors think about XRP's price drop and SEC lawsuit resolution?

Currently, XRP is holding above its moving average, which is a positive sign for the cryptocurrency. However, analysts are closely monitoring the $2 support level. If XRP fails to hold this support level, it could lead to a significant downfall. Peter Brandt recently pointed out the development of a head-and-shoulders pattern, which is a bearish indicator. On the other hand, if XRP can manage to break above the $3 mark, it could signal a positive turnaround, restoring confidence in the cryptocurrency and suggesting that the worst may be over for XRP.

XRP’s price is influenced by several important factors, including the potential approval of a spot XRP ETF and broader market conditions. If XRP stays above $2, it could continue on its current path. However, if it falls below this level, the situation could worsen for XRP. Conversely, if XRP can break above $3, it could signal a fresh rally, boosting investor confidence and indicating that XRP may be ready to rise again.

As the market awaits the ETF decision and other broader trends, XRP finds itself at a pivotal point. The next few weeks will be crucial in determining whether XRP can hold onto the $2 support or push above $3, which could decide if it’s ready for a comeback or if more challenges lie ahead.

Legal developments surrounding the SEC vs. Ripple case are also expected to play a significant role in XRP's price trajectory. A favorable outcome could drive growth, although analysts predict that reaching extreme highs is more realistic than extreme highs. The introduction of the Financial Freedoms Act by Senator Tommy Tuberville has also stirred interest in US-made coins, potentially driving demand for XRP. This act allows US individuals and families to invest part of their retirement funds into cryptocurrencies, which could bolster Ripple's dominance among altcoins.

On-chain data shows that whales have been purchasing large amounts of XRP, suggesting optimism about a potential price recovery. The 4-hour price chart indicates a resumption of buying activity, which could lead to a bounce towards $2.55. The RSI line has bounced from an oversold region, and the price has broken out past the lower Bollinger band, testing the resistance at the middle band. If Ripple makes a decisive breakout above this level, it could pave the way for gains past $2.55, providing a bullish outlook for the asset.

However, the overall sentiment remains cautious, with some analysts predicting a potential drop below $2 as investors flee from risk. The brief rally highlights a market that is skeptical about the asset's future, with consolidation expected between the $2.20 and $2.30 support regions as long as XRP does not surpass $2.60. The historical price zones of XRP also play a crucial role in shaping trading strategies, with key zones and trends influencing the asset's future potential in the crypto market.

In conclusion, the future of XRP remains uncertain, with both bullish and bearish scenarios possible. Legal developments, regulatory changes, and on-chain data all point to a complex interplay of factors that could determine the asset's price trajectory. As April 2025 approaches, investors will be closely watching these developments, hoping for a rebound that could see XRP reclaim its former glory.