XRP Price Surges to $2.96—Will It Break Above $3 or Plunge Back to $1.70?

XRP-USD Price Analysis: Can Ripple Rebound or Is the $2 Level at Risk?

Ripple (XRP-USD) Faces Volatility Amid SEC Case and U.S. Crypto Reserve Announcement

The cryptocurrency market has been sent into a frenzy after Ripple’s XRP-USD surged 40%, fueled by Donald Trump’s announcement of a U.S. strategic crypto reserve that would include XRP, Solana (SOL), and Cardano (ADA). The announcement has brought fresh optimism to a market that has been struggling, with XRP’s price jumping from $2.15 to $2.96 within hours. However, despite the short-term boost, Ripple remains in a precarious position, as legal uncertainty surrounding the SEC lawsuit and broader crypto market trends continue to weigh on its long-term outlook.

The question now is whether XRP-USD can sustain its gains or if the price will face a renewed sell-off back toward $2.00 and below.

SEC Lawsuit Remains a Key Factor for XRP-USD Price Direction

Ripple’s ongoing battle with the Securities and Exchange Commission (SEC) remains the most significant factor impacting XRP’s long-term price trajectory. While the SEC recently suspended its lawsuits against Coinbase and Uniswap, fueling speculation that Ripple may reach a settlement soon, the case remains unresolved.

Legal analysts argue that while a settlement could remove a major roadblock, it is unlikely to be a full dismissal. Ripple has been expanding its regulatory footprint, securing over 60 regulatory licenses across Asia and Europe, but U.S. legal clarity remains a hurdle for institutional adoption.

Despite the uncertainty, Ripple’s new partnership with BDACS, a South Korean digital asset custody firm, is a bullish signal. The firm will offer institutional-grade custody for XRP and RLUSD (Ripple’s stablecoin), aligning with South Korea’s push for stronger digital asset regulation. This move positions Ripple favorably in the $16 trillion digital asset custody market projected by 2030.

XRP-USD Price Breaks Key Support, But Can It Hold Above $2?

Technical analysis suggests XRP is at a critical inflection point. After breaking below $2.25, analysts warned of a potential decline toward $2.00 and $1.70. Last week, XRP briefly fell below $2.00, hitting $1.96, before rebounding sharply. The sudden price jump was triggered by Trump’s crypto reserve announcement, but it remains unclear whether XRP can sustain this rally or if another leg lower is coming.

Key technical levels to watch:

• Support: $2.00 (psychological level), $1.85, $1.70
• Resistance: $2.50, $2.75, $3.00

Traders should watch for XRP’s ability to hold above $2.00. If buyers fail to defend this level, we could see a sharp decline toward $1.70 in the short term.

Institutional Adoption and Whales’ Behavior: What Are Big Money Investors Doing?

Ripple’s expansion into institutional custody and cross-border payments has been one of its strongest narratives. However, recent price action suggests that large investors (whales) have been selling XRP. Data shows that wallets holding over 10 million XRP have been offloading coins, leading to speculation that institutional investors may be taking profits or shifting funds to other assets.

Meanwhile, retail investors have been shifting focus to new altcoins like Rollblock (RBLK), a GameFi protocol that has raised over $11 million in a record-breaking presale. With RBLK surging over 500% in recent months, some investors are betting that newer projects could deliver higher returns than XRP.

Could XRP-USD Reach $600? Elon Musk Hints at Crypto Involvement

Speculation has been rampant that Elon Musk could indirectly endorse XRP after Tesla’s recent crypto filings. Some investors believe Musk’s past involvement with Dogecoin (DOGE) could extend to XRP, given Ripple’s focus on payments and institutional adoption.

While some analysts predict XRP could hit $600, such a forecast is extremely speculative. For XRP to reach such a price, it would require a market capitalization exceeding Bitcoin’s current dominance, which is unlikely without a complete shift in the global financial system.

Can XRP-USD Survive the Volatility?

The next few weeks will be critical for XRP. If the SEC case reaches a favorable resolution and Ripple continues expanding institutional adoption, XRP could see a sustained rally above $3.00 and beyond. However, if regulatory uncertainty persists, XRP-USD could struggle to maintain momentum, with $2.00 being a key battleground for bulls and bears.

At this point, XRP remains a HOLD, with caution advised for both short-term traders and long-term investors. If support at $2.00 fails, a retest of $1.70 is likely. However, if momentum remains strong, $3.00 could be the next upside target.

That's TradingNEWS