XRP Price Prediction: XRP at $2.40 Shows Multiple Buy Signals as Bulls Defend Critical Support Zone-What’s Next?

XRP has returned to the spotlight amid a complex blend of legal drama and promising technical signals. Trading around $2.40, the token is showing multiple buy signals as bulls successfully defend a critical support zone, setting the stage for a potential breakout. However, XRP’s near-term trajectory remains intertwined with ongoing regulatory uncertainty, particularly the protracted legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).

Legal Developments: Ripple’s Court Battle Continues

On May 16, 2025, a surprise ruling by Judge Analisa Torres denied both the SEC and Ripple’s joint motion to lift the institutional sales injunction and reduce penalties. This decision means that neither party can unilaterally ease restrictions or penalties without convincing the court with more than mutual agreement. The court’s insistence on a “good reason” to reverse its prior position highlights the seriousness with which it views the case.

Legal experts and market commentators have noted the implications:

• Analyst Eleanor Terrett remarked that Judge Torres “isn’t letting them walk away easily,” signaling a tough judicial stance.

• Attorney John Deaton suggested that while a revised motion could eventually be approved, it is unlikely to happen for several months, prolonging uncertainty.

Ripple’s path forward involves continuing its cross-appeal, while the SEC may appeal the programmatic sales ruling. With a June 16 deadline looming for a settlement update, the legal drama remains far from resolved.

What’s at Stake: Settlement, Appeals, or Supreme Court?

The Ripple-SEC case could conclude in one of three ways:

1. Full Settlement: Both parties agree to terms, potentially ending the litigation and clearing the way for regulatory clarity.

2. Appeals Process: The case could move to the U.S. Court of Appeals, extending the timeline and uncertainty.

3. Supreme Court Ruling: A decision at this level would set a landmark precedent for XRP and the broader cryptocurrency market, influencing regulatory approaches nationwide.

For XRP bulls, the timing is critical. Prolonged litigation or an unfavorable SEC ruling could delay or derail future XRP spot ETF approvals in the U.S., which had previously fueled optimism in mid-2023. The SEC’s increasingly aggressive enforcement stance on crypto adds to the stakes, making Ripple’s legal outcome a bellwether for the industry.

XRP Technical Setup: Signs of Strength at $2.40

Despite legal headwinds, XRP’s price action reveals encouraging technical signals:

• Support Zone Defense: XRP has held firm above the $2.314 support level, a key area that has prevented deeper declines.

• Breakout from Descending Channel: The token recently broke out of a descending channel, signaling a shift from bearish to bullish momentum.

• 50-Period EMA Support: The 50-period exponential moving average (EMA) at $2.382 has flipped from resistance to support, a classic bullish indicator.

• MACD Momentum: The Moving Average Convergence Divergence (MACD) indicator has crossed below zero with green histogram bars, suggesting increasing upside momentum.

• Candlestick Patterns: A bullish engulfing candle followed by consolidation indicates buyers are absorbing selling pressure, preparing for a potential rally.

Key Levels and Trading Strategy

• Entry Point: A confirmed breakout above $2.44 would signal strong bullish momentum.

• Price Targets: Initial targets are $2.504 and $2.568, representing resistance levels from recent price action.

• Stop-Loss: To manage risk, a stop-loss below $2.369 is advisable, protecting against downside moves if the breakout fails.

For new traders, XRP’s current position “on a ledge” after climbing out of a price slide suggests that a move above $2.44 could catalyze a meaningful rally.

Market Sentiment and Investor Focus

While XRP navigates its legal and technical challenges, investor attention is also shifting toward yield-generating altcoins. One standout is BTC Bull Token ($BTCBULL), which has gained traction due to its innovative staking model offering an estimated 71% annual yield with no lockups or withdrawal penalties.

• Presale Success: BTCBULL has raised nearly $5.9 million of its $6.84 million presale goal, with less than $1 million remaining before hitting the next price tier.

• Staking Flexibility: Investors can earn passive income while maintaining full liquidity, a compelling alternative to traditional DeFi staking protocols.

BTCBULL’s blend of meme token virality and DeFi utility positions it as a leading candidate to capitalize on the 2025 crypto cycle, attracting retail investors seeking high yields.

Conclusion: XRP’s Tightrope Walk Between Legal Uncertainty and Technical Strength

XRP finds itself walking a tightrope-facing ongoing regulatory uncertainty while displaying encouraging technical signs of bullish momentum. For now, bulls hold short-term control, and a confirmed move above $2.44 could trigger a rally toward $2.56 and beyond.

However, the legal battle with the SEC remains a significant overhang, with potential outcomes that could dramatically influence XRP’s future price and regulatory landscape. Investors should monitor both technical developments and legal updates closely to navigate this complex environment.