XRP Surges 12% After SEC Lawsuit Dropped, Eyes $2.40

XRP, the cryptocurrency associated with Ripple, has recently hit a significant milestone by reclaiming the $2.25 mark. This price point is crucial as it serves as a key resistance level that could either trap aggressive buyers or signal a potential breakout. The broader market structure, however, remains bearish, with the $2.25 level acting as a critical juncture for the cryptocurrency's future trajectory.

The price of XRP has shown signs of consolidation, with analysts suggesting that it must settle above $2.20 to sustain further gains. The cryptocurrency has recently experienced a fresh increase, surpassing the $1.980 and $2.050 levels. This upward momentum has sparked hopes of a potential breakout rally, with some analysts predicting that XRP could push well beyond recent resistance zones.

Technical setups and legal clarity have fueled bullish sentiment across the crypto community. Prominent chart analyst Doji noted that XRP’s current formation shows classic signs of accumulation, with price action near the Point of Control (POC) at $2.40 converging with a long-standing descending resistance line. This convergence is seen as a high-probability magnet for price in the coming weeks, and a confirmed breakout above this line could signal a full trend reversal.

Despite recent gains, XRP remains down more than 8% over the past month, indicating that the broader trend still leans bearish. A prior Head and Shoulders pattern triggered a wave of downside pressure, but recent liquidity sweeps appear to have flushed out leveraged shorts, potentially setting the stage for a relief rally. However, market watchers remain cautious, urging traders to watch for confirmation before assuming a new bull phase.

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) reached a turning point when the lawsuit was officially dropped. This regulatory win injected a burst of confidence into the Ripple market, pushing the XRP price above the $2 mark with a 12% daily surge. The resolution of the lawsuit has opened the door for renewed institutional interest and broader adoption, reinforcing Ripple’s position in the U.S. and improving its standing globally.

Analysts have drawn parallels between XRP’s current price structure and its past bull cycles, suggesting that the cryptocurrency may be on the verge of repeating its most iconic rallies. Crypto analyst Egrag Crypto believes that XRP could reach $20 to $45 in an extended run, with a more modest projection targeting $2.40 in the short term. However, skeptics argue that today’s regulatory landscape and macroeconomic conditions may prevent such massive gains from materializing as easily.

Ripple’s fundamental growth adds weight to bullish expectations. The company’s recent acquisition of Hidden Road, a platform processing over 50 million transactions daily, could significantly impact XRP’s utility and demand. If even a fraction of these settlements transition to the Ripple ledger (XRPL), it could generate massive transaction volumes and strain the current supply. Crypto researcher Zach Rector suggested that if XRPL were to process 10% to 50% of Hidden Road’s flows, XRP would need to handle $1 billion to $5 billion in daily volume, potentially driving prices higher.

The possibility of XRP hitting $4—or even setting a new all-time high—is not out of the question. Recent technical patterns, particularly a falling wedge structure, suggest tightening consolidation and building momentum. This bullish formation has led to a 13–14% surge in recent days, adding weight to forecasts calling for a breakout. However, achieving a sustainable move to $4 or higher would require strong capital inflows and broader institutional participation, as well as the resolution of macro risks such as ongoing trade tensions and fluctuating interest in the crypto market.

In conclusion, the Ripple XRP news cycle is heating up, with analysts closely watching for signals of a confirmed breakout. From bullish technical patterns and historical price echoes to a major legal victory and expanding institutional interest, the case for an XRP price breakout is building. However, potential does not guarantee performance, and XRP’s next big move will depend on real-world developments, from policy shifts to adoption metrics. Whether it hits $2.40 in the near term or charts a course toward $45, XRP’s next chapter may be its most consequential yet.