XRP faces a mixed situation as positive news fails to boost its price. Despite announcements like the upcoming XRPL EVM mainnet launch and USDC integration, XRP has dropped 6.5% over the past three days.
Technical indicators like RSI and DMI show early signs of momentum change, while EMA signals still indicate a downward trend. Monday is the last opportunity for Ripple and SEC to resolve their lawsuit – if they fail, the legal battle could extend to 2026, adding more pressure to XRP's short-term prospects.
XRP increases utility, but price struggles before legal deadline
Despite positive developments around Ripple, XRP's price is not keeping up – dropping 6.5% in the past three days. This occurs even as Ripple executives confirmed the XRPL EVM sidechain will launch on mainnet in Q2 2025, an important step bringing Ethereum-compatible smart contracts to XRP Ledger. Recently, many companies have also started building XRP reserves.
In parallel, Circle has announced the launch of USDC on XRPL, signaling broader institutional support and enhanced utility in DeFi, payments, and global transactions.
However, the market remains cautious as all eyes are on Monday, the last opportunity for Ripple and SEC to resolve their prolonged lawsuit.
After a failed attempt in May, Ripple and SEC filed a motion to reverse a crucial securities ruling – but legal experts remain skeptical.
Critics argue the new motion lacks substance and fails to provide compelling arguments to change Judge Torres' initial decision. If the motion is rejected again, Ripple may face an extended ban on selling securities to retail investors, and the legal battle could extend to 2026.
Despite regulatory advantages and increasing infrastructure support, XRP seems stuck between positive headlines and declining price action.
XRP momentum changes: RSI and DMI signal potential reversal
XRP's RSI has risen to 43.56, significantly increasing from 28.24 just two days ago. RSI is a momentum indicator measuring recent price change speed and magnitude, typically on a scale from 0 to 100.
A score below 30 indicates an asset might be oversold, while a score above 70 suggests potential overbought conditions.
XRP RSI. Source: TradingView.XRP's recent movement out of the oversold zone and into the mid-40s suggests a potential momentum shift, hinting at early signs of buyer interest returning – though it has not yet entered the bullish zone.
XRP's ADX – measuring trend strength regardless of direction – has increased to 26.47 from 18.84, crossing the important 25 threshold typically marking the start of a strong trend.
XRP DMI. Source: TradingView.Meanwhile, +DI (positive direction index) rose from 10.56 to 15.57, while -DI (negative direction index) sharply dropped from 36.77 to 23. This intersection suggests increasing upward price pressure while downward price pressure is diminishing.
If this movement continues and ADX keeps rising, XRP might be preparing for a trend reversal to the upside.
EMA signals remain bearish, but XRP targets breaking $2.28
XRP's EMA lines remain in a bearish configuration, with short-term lines below long-term lines – indicating ongoing downward momentum.
However, recent price action suggests sentiment might be changing. If XRP can build on its recovery and break through the critical resistance level at $2.28, it could open opportunities for a move towards the next target at $2.33.
XRP Price Analysis. Source: TradingView.This potential breakthrough would mark a significant technical improvement and signal new bullish strength.
However, the situation still requires caution. If XRP cannot maintain its current momentum and is rejected at the resistance level, a correction could pull the price back to the support zone of $2.05.
