XRP Price Struggles Below $2.60 – Can Bulls Regain Momentum?

XRP Price Struggles Below $2.60 – Can Bulls Regain Momentum?

XRP has faced heavy resistance near $2.60, currently trading around $2.55 after a sharp pullback from its recent high of $2.83. Despite significant whale accumulation and renewed regulatory optimism, the price remains under pressure, leaving traders questioning whether XRP can stage a recovery or if more downside is ahead. The struggle to reclaim key support levels raises concerns about further bearish momentum, even as institutional interest grows.

XRP (XRP-USD) Faces Technical Breakdown – Key Levels to Watch

XRP’s price action has been volatile, with the asset losing a crucial support level at $2.60. The 50-day Simple Moving Average (SMA), which has historically provided strong support, was breached, leaving XRP exposed to further declines. The failure to reclaim this level could indicate a deeper retracement, possibly targeting $2.40 or lower.

A bear flag pattern has emerged on the daily chart, suggesting the possibility of continued downside pressure. The flag’s projected breakdown could push XRP toward $1.70, marking a potential 32% decline from current levels. The last time XRP fell below the 50-day SMA, it triggered a significant correction, making this a critical level to watch.

Despite the bearish technical structure, bulls remain hopeful. Historically, XRP has rebounded strongly after reclaiming the 50-day SMA, with past breakouts leading to gains of 35% and 500% in separate instances. If XRP can rally back above this moving average, a move toward $3.00 becomes a possibility.

Whale Accumulation and Institutional Moves – Will It Boost XRP?

Large investors have been making strategic moves in the XRP market, accumulating over $400 million worth of tokens in the past 48 hours. This whale activity signals institutional confidence in XRP’s long-term potential, even as the asset struggles with short-term technical weakness.

Additionally, an unknown wallet recently withdrew nearly 20 million XRP (valued at $50.66 million) from Gemini, raising speculation about a major investor shifting holdings to cold storage. Large exchange withdrawals often indicate bullish sentiment, as investors prefer to hold their assets off trading platforms instead of selling them.

However, despite these bullish signals, XRP has yet to make a significant move to the upside. The lack of immediate price action suggests that broader market sentiment remains cautious, with traders waiting for more clarity on regulatory developments and ETF approvals before making aggressive bets.

XRP ETF Hopes and Trump’s Crypto-Friendly Stance – A Catalyst or False Hope?

Speculation around an XRP exchange-traded fund (ETF) continues to fuel optimism in the market. Following reports that the SEC had received a filing for a Ripple ETF, XRP saw an initial price surge, though the momentum quickly faded. The probability of an XRP ETF approval before August has dropped to 44%, according to market data, raising doubts about whether this narrative can sustain buying interest.

Adding to the speculation, former U.S. President Donald Trump’s recent remarks on cryptocurrency have reignited debate about the regulatory future of XRP. Trump’s shifting stance on digital assets has led some investors to believe that a more crypto-friendly administration could ease regulatory pressure on Ripple.

The "Trump Effect" has been cited as a factor behind renewed interest in XRP, with Ripple Labs adjusting its business strategy to capitalize on the potential shift in regulatory attitudes. However, while political changes could influence long-term adoption, traders are currently focused on immediate price action and key resistance levels.

SEC Lawsuit Resolution and Regulatory Pressure – Will It Weigh on XRP’s Future?

Ripple’s ongoing battle with the SEC remains a critical factor in XRP’s price trajectory. The lawsuit, which has dragged on for years, saw a partial victory for Ripple when a judge ruled that XRP sales on secondary markets did not constitute securities transactions. However, the case is far from over, as the SEC continues to push for stricter regulations on crypto assets.

A definitive resolution in Ripple’s favor could act as a major catalyst for XRP, potentially opening the door for institutional adoption and new partnerships. On the flip side, a prolonged legal battle or an unfavorable ruling could add further downside pressure.

Short-Term vs. Long-Term XRP Price Outlook – What’s Next?

In the short term, XRP remains in a fragile position. If it fails to reclaim $2.60, a move toward $2.40 and possibly $2.20 becomes increasingly likely. A breakdown below these levels could expose XRP to a sharper correction toward the $1.70 bear flag target.

However, if XRP can stage a breakout above $2.60 and confirm support at the 50-day SMA, the next resistance levels to watch are $2.83, followed by $3.00. A move beyond $3.00 could reignite bullish momentum, setting the stage for a push toward $4.00 or higher.

For now, traders should closely monitor whether XRP can reclaim lost support levels or if further downside is on the horizon. Whale accumulation, regulatory developments, and ETF speculation will continue to drive sentiment, but technical indicators suggest caution until a definitive breakout occurs.

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