XRP Price Prediction: XRP Slips Below Key Support—Is a $3 Comeback on the Horizon?

After rallying to $2.65 earlier this month, the Ripple-associated token has since retraced, falling to a low of $2.29 as of May 24. The drop came in the wake of a closely watched May 22 closed-door meeting by the U.S. Securities and Exchange Commission (SEC), which ended without any public updates on the ongoing XRP lawsuit.

This silence appears to have triggered renewed market anxiety, especially given the legal weight the case continues to carry for Ripple and its native token. Traders had hoped for some clarity following Judge Analisa Torres’ recent rejection of the SEC’s attempt to limit XRP sales and reduce Ripple’s $125 million penalty.

The broader XRP market sentiment remains fragile due to the lingering legal drama surrounding the SEC vs. Ripple case. In her latest ruling, Judge Torres cited procedural flaws in the SEC’s motion and raised questions about how its enforcement aligns with investor protection.

The U.S. SEC has postponed its review of XRP ETF applications submitted by 21Shares, Bitwise, and CoinShares. Source: Good Morning Crypto via X

Commenting on the legal implications, crypto attorney John E. Deaton remarked, “The SEC would have to admit their legal stance was wrong and acknowledge XRP as a commodity, not a security.” Such an admission would not only shift the regulatory treatment of XRP but could also set a precedent for other crypto assets.

Until a definitive resolution is reached, uncertainty surrounding the XRP lawsuit and its regulatory status continues to weigh heavily on investor confidence. On May 23, XRP dropped by 5.57%, underperforming the overall crypto market, which saw a broader 4.09% correction.

Technically, XRP/USD is now testing a descending triangle pattern, which reflects growing market indecision. The 50-period and 200-period Exponential Moving Averages (EMAs) have recorded a bearish crossover, reflecting short-term bear pressure. However, XRP is now testing these moving averages, signaling the possibility of a change in momentum.

XRP’s potential rise to $5 depends on RLUSD bridging institutional adoption and DeFi utility, driving sustained demand for XRP. Source: Osodatsismoso on TradingView

The most widely followed momentum indicator, the MACD histogram, is flattening—indicating reduced selling pressure and a possible reversal if buying pressure returns. Support is near at $2.22 to $2.17, with a Doji candlestick at $2.2863 as a possible turn point. A close above $2.40 on a confirmation would open up short-term targets of $2.48 and $2.54, with $2.66 a critical level for bulls to recapture.

Despite its recent dip, XRP’s overall market structure still shows signs of bullish intent. The price has consistently formed higher highs and higher lows—a textbook uptrend. The pullback toward the $2.30–$2.34 range was anticipated, with analysts highlighting this zone as a critical safety net.

XRP was trading at around $2.29, down 2.17% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

That said, if XRP closes below this zone consistently and fails to reclaim it swiftly, analysts warn of a deeper decline toward the $2.10–$2.15 support range. Holding this level would be essential for any bullish continuation and could potentially form the right shoulder in a developing inverse head and shoulders pattern—a formation that often precedes strong upward movements.

Market watchers are divided on whether XRP can stage a swift recovery and break past the $3 mark in the coming weeks. A decisive move above $2.55–$2.62 resistance could shift momentum back in favor of bulls. This resistance cluster is seen as the last major barrier before XRP can attempt to reclaim its previous all-time high of $3.55.

XRP remains within a bullish triangle pattern, and if it breaks above $2.61 with RSI bouncing off 50, it could signal a strong upward move toward $3. Source: Elenigma080 on TradingView

Some analysts are also tracking a potential five-wave Elliott Wave decline from the recent high. If accurate, XRP could be in the middle of a corrective bounce (Wave 2) before another dip to retest long-term support.

Still, the broader trend remains cautiously optimistic. If the Ripple lawsuit reaches a favorable resolution or regulatory conditions turn clearer—especially regarding XRP’s classification as a commodity—it could trigger a fresh wave of institutional interest.

The following are the major drivers: whether the SEC will appeal Judge Torres’ latest judgment, and news on prospective XRP ETFs—something that is of huge interest to retail investors as well as institutional investors. Any progress in these areas can make a significant difference to Ripple XRP news and the XRP price over the next couple of days.

In addition, developments on Ripple’s partnerships, such as its supposed partnership with Bank of America, and launches on RippleNet may also affect sentiment. Already, CEO Brad Garlinghouse has pointed out the company’s quest for regulatory certainty and worldwide expansion through Ripple Ledger innovations and Ripple exchange infrastructure.

XRP’s path to reclaiming $3 remains plausible but not without hurdles. Technical signals are mixed, and legal ambiguity continues to cast a long shadow. A breakout above $2.40 and successful retest of higher resistance zones would be encouraging signs for bullish investors. However, much hinges on both market momentum and developments in the XRP SEC lawsuits.

For now, investors and traders alike are watching key price levels and awaiting the next move in the ongoing Ripple lawsuit—a battle that continues to define XRP’s place in the crypto market.