Are You Not Bullish Enough? XRP Price Action Doesn't Reflect the Dropped SEC Case

"You're not bullish enough!" an XRP enthusiast exclaimed on X last week after Ripple, which utilizes the token for cross-border transactions, announced that the U.S. Securities

An XRP enthusiast was recently seen lamenting on X, "People aren't bullish enough!" after the SEC dropped its case against Ripple.

The crypto community has been brimming with excitement following the news. It marks the conclusion of a long-standing legal battle that had a significant impact on XRP’s performance.

However, despite the optimism and key milestones like the XRP ETF hype and hopes for the token to become a part of the U.S. strategic reserve, the recent price action shows a major bearish shift in technical trend, signaling a notable price slide ahead.

XRP surged over 11% to $2.59 last Wednesday, with many pouring praise on the good news. But the follow through has anything but bullish with prices rangebound between $2.30-$2.50 despite more optimism that expected reciprocal trade tariffs from President Donald Trump on April 2 could be more measured than initially expected.

But three-line break chart shows a new low is forming, which suggests a bullish-to-bearish shift in momentum. Similar patterns characterized the beginnings of prolonged bear markets in 2021 and early 2018.

The moving average convergence divergence (MACD) histogram, used to gauge trend strength and trend changes, is producing deeper bars below the zero line on the weekly chart. It’s a sign of the strengthening of the downside momentum.

The same indicator flipped positive in November, after which prices surged from $1 to above $3.

Also, the 5- and 10-week simple moving averages (SMAs) have crossed bearish as well, suggesting the path of least resistance is to the downside.

The Bollinger bands – volatility bands placed two standard deviations above and below XRP’s 20-week SMA – have widened in response to the sharp price rally in late 2024 and early this year.

Historically, prices have tended to move lower following the sharp widening of the Bollinger bands, as observed after mid-2021 and early 2018.

A firm move of $3, the high registered on March 2, would invalidate the bearish setup, negating the lower highs pattern to suggest a renewed bullish technical outlook.

Some analysts expect XRP to reach as high as $10 by the end of this decade.