XRP is currently experiencing a bearish trend due to several key factors that reflect both technical weakness and broader market sentiment. Technically, XRP has failed to break above critical resistance levels around $2.35 to $2.40, and its momentum indicators like the Relative Strength Index (RSI) and MACD are showing signs of decline or neutrality. This indicates that buyers are losing control and that there is a lack of strong bullish momentum in the short term. Although XRP is still trading above its 200-day simple moving average (around $1.90), it is struggling near shorter-term moving averages, which suggests increasing pressure from sellers.
On chain data further supports this bearish sentiment. Active wallet addresses have dropped by more than 50% in recent weeks, pointing to reduced user engagement and transactional activity on the network. Additionally, whale accounts (large holders) appear to be offloading their XRP rather than accumulating, and the percentage of the total supply currently in profit has also declined. These signals indicate weakening investor confidence and a shift toward short-term exits.
Regulatory uncertainty continues to hang over XRP as a major factor influencing its price direction. While Ripple has seen partial victories in its legal battles with the U.S. Securities and Exchange Commission (SEC), the case isn’t fully resolved, and XRP still lacks clear regulatory status in several key markets. The absence of an approved XRP exchange-traded fund (ETF), especially in the U.S., further limits institutional inflow and broad adoption compared to assets like Bitcoin and Ethereum.
Looking forward, XRP’s future depends heavily on external catalysts. In a bullish scenario, if Ripple secures complete regulatory clearance, launches institutional partnerships, and possibly an XRP ETF, the coin could reach a price range of $5 to $7 by late 2025. Additionally, if the broader crypto market turns bullish and XRP breaks above the $2.65–$3.00 resistance range, higher targets even beyond $7 are possible. A more conservative base-case prediction places XRP between $3 and $5, assuming slow but steady adoption and no further legal setbacks. However, if legal troubles return or broader market sentiment deteriorates, XRP could fall back to a support zone around $1.50 to $2.00.
In summary, XRP remains bearish in the short term due to weak technical patterns, declining network activity, and unresolved regulatory issues. However, its medium- to long-term potential remains significant if these challenges are addressed and market conditions become favorable.
