XRP Consolidates Around the $2.39 Mark After the SEC Dropped Its Lawsuit Against Ripple Labs

XRP, the cryptocurrency associated with Ripple Labs, is currently consolidating around the $2.39 mark after experiencing both rallies and corrections in recent weeks.

The price of XRP is consolidating around the $2.39 mark on Tuesday. The cryptocurrency has been seen rallying and correcting in recent weeks following the news that the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple Labs last week.

The resolution of this legal battle has fundamentally shifted the narrative around the token. It has also sparked optimism among XRP supporters and analysts who are now making new price predictions.

As the cryptocurrency continues to be closely monitored, several key price levels and technical indicators will be useful for traders to keep in mind.

Here's a breakdown of what traders need to know about XRP in the short term.

Technical Analysis

Chart analysts will be focusing on a symmetrical triangle pattern forming on the 4-hour chart. This formation shows higher lows at $2.28 and resistance building near $2.55.

The pattern suggests a breakout may be coming soon. Traders will also be looking for confirmation of any move with increased trading volume.

Several key price levels to keep an eye on in the short term:

On the upside, $2.40-$2.42 acts as immediate resistance. A clean move above these levels could open the door for a rally toward $2.55. Should momentum continue, the price might reach as high as $2.88.

On the downside, $228 serves as critical support. A move lower and a failure to hold this support could push XRP down toward $2.18-$2.20. If bearish pressure increases, the price might extend its decline to around $2.00, which would pose a risk for those holding the cryptocurrency.

In terms of momentum indicators, they are showing mixed signals with a slight bullish tilt. The Relative Strength Index (RSI) stands at 51.45, which indicates balanced buying and selling pressure.

The Moving Average Convergence Divergence (MACD) shows a minor positive crossover with the MACD line at 0.0022 versus the signal line at 0.0065.

Notably, Bollinger Bands have contracted with the price trading close to the mid-band at $2.40. This narrowing suggests that a period of increased volatility may be approaching.

On the daily chart, XRP is moving within a descending triangle pattern. The resistance level near $2.88 remains the larger breakout barrier to watch.

"The breakout of the symmetrical triangle is crucial. If the price breaks out of the triangle to the upside, we can expect a strong rally in the coming days or weeks," Bitget analyst Ryan Lee said.

In the short term, Lee sees price targets of $2.00-$2.17 on the downside and $2.65-$3.00 on the upside.

"For the long term, if we consider the broader market cycle and Ripple's potential in payment processing, we can set a price target of $4.20-$10 by 2030. However, we need to keep an eye on the $2.50 price level, as it will be critical for the next breakout or breakdown," Lee added.

Chart analyst Egrag Crypto has an even wilder price prediction with potential moves to $6 or even as high as $27 between 2025-2026.

"The price action is looking promising for XRP in the mid-term, with the potential for a rally to $6 by 2025-26 or even $27 if the bulls take over completely and we see an explosive move,' the analyst stated.

"The technical setup is favorable for a continuation of the uptrend, and with the recent news flow, there is a good chance that we will see at least $6. However, if the bears regain control, we could see a drop to $2.88 or lower."

The Fear & Greed Index for the crypto market is currently in the "Fear" territory at 45. This indicates that a cautious sentiment still grips the broader cryptocurrency sector.