XRP Price Action Amid Global Market Shifts

XRP is experiencing mild bearish momentum as it faces a critical technical test in the wake of recent developments.

XRP price is currently facing a critical technical test as it attempts to break through the 50-day Exponential Moving Average (EMA) and break out of a bearish trendline.

After former President Donald Trump placed some tariffs on hold amid global market shifts, many traders are expecting the market to recover. However, with macroeconomic and key cryptocurrency market developments unfolding, the price action of XRP continues to be influenced.

Trump's decision to suspend reciprocal tariffs on goods from over 70 countries has raised hopes for economic recovery. He also confirmed over the weekend that smartphone tariffs would not increase, which has sparked optimism in broader markets, indirectly benefiting cryptocurrencies like XRP.

In addition to the tariff developments, Ripple Labs has been actively navigating its legal battles with the U.S. Securities and Exchange Commission (SEC). The SEC and Ripple recently filed to halt appeals and seek a negotiated settlement. This comes after the SEC’s lawsuit against Ripple was dismissed just weeks ago.

As the case progresses, traders are keeping an eye on any impact on the cryptocurrency’s price.

Furthermore, Ripple’s move to acquire Hidden Road for $1.25 billion has contributed to slight increases in XRP’s price. An executive from Ripple mentioned that the business aims to transfer Hidden Road’s $10 billion in daily volume to the XRP Ledger, which could strengthen XRP’s position as a leading payment solution in the cryptocurrency space.

However, despite the positive news, XRP is currently facing resistance at the 50-day EMA. The coin's price action has shown signs of mild bearish momentum, and it will need to break through the bearish trendline to regain bullish sentiment.

To reach an all-time high (ATH), XRP must stay above the $2 level and manage to break the trendline holding it back.

In a bearish scenario, if Bitcoin resumes its downward movement, XRP could stall around $2 and experience bearish volatility towards the next support at $1.5. On the flip side, a close above the $3.4 mark—its most recent high—before the end of the month could signal a continuation of upward momentum, with ascending lows and highs reinforcing a bullish outlook.

The Relative Strength Index (RSI) for XRP has been trending downward since December, adding to the skepticism of many traders who are concerned that the momentum may continue to the downside. However, a break above the bearish trendline could provide the necessary boost for XRP to regain bullish momentum and push toward higher targets.

Overall, while the legal developments between Ripple and the SEC continue to be a key factor influencing the cryptocurrency's price, the cryptocurrency market remains volatile. A resolution of the legal issues, along with Trump’s trade decisions and Ripple’s move to acquire Hidden Road, could act as key catalysts for future growth.

Traders are closely watching the price action and technical indicators to gauge whether XRP can manage to break its resistance and hold steady above the critical $2 level.

With Bitcoin’s movements also playing a key role in influencing XRP’s price, the overall market sentiment remains mixed. XRP’s ability to break the bearish trendline and hold above the $2 mark will be crucial for its future prospects in the coming weeks.