Ripple XRP/USD fell sharply on Friday, dropping over 3.07% to $2.42. The drop follows a federal court decision rejecting SEC and Ripple's joint motion for an indicative ruling, prolonging a long-running legal battle between both parties.
The ruling came from US District Court Judge, Analisa Torres, who denied the joint request from the SEC and Ripple Labs. It aimed to pre-emptively clarify how the court would rule if it regained jurisdiction on the matter.
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According to BeInCrypto, Judge Torres stated that the motion is procedurally improper. Both parties filed final appeals in August 2024, with cross-appeals still pending in the higher court.
The agreed-upon settlement between both parties that would reduce Ripple's penalty from $125 million to $50 million is stalled. Dissolution of an injunction preventing Ripple from certain token sales remains uncertain until both parties file a proper motion addressing the procedural issues.
Ripple's Chief Legal Officer reacted on X, stating that both parties are in full agreement and will revisit the case in court. While the company emphasized that the new order does not change anything about Ripple's earlier win, the market reacted negatively.
Analysts confirm that while XRP's broader trend is bullish, a potential shift in the momentum is underway. Ripple's RSI dropped from 65.13 to 49.65, with XRP slipping back into the lower half of the neutral RSI zone.
As per TradingView the short-term moving averages are positioned above the long-term ones, indicating a broader bullish trend. Fading bullish momentum is being observed as the gap between EMA lines is narrowing.
The nearest support for XRP lies at $2.42. Slipping below this could trigger bearish pressure and potentially a slide towards $2.32 or $2.15 in a steeper correction.
If buying momentum returns, XRP could retest the $2.65 resistance level, fuelling further gains. If XRP reaches this zone, a breakout may set XRP on course for $2.70 mark.
The Ichimoku Cloud Chart indicates a sign of a potential bearish crossover, with price action moving below both the red Kijun-sen lines, and the blue Tenkan-sen lines.
Ripple stands at a key inflection point. While long-term trends remain bullish, short-term signals point to caution. Unless XRP regains momentum, a deeper pullback may be on the cards. With legal uncertainty and technical indicators skewing bearish, XRP's near future momentum appears capped.
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