Summary
⚈ Bullish sentiment dominates the asset, with 71% of futures traders expecting a price rise.
⚈ Legal and ETF developments could trigger major price moves.
XRP is consolidating just above the $2 mark, with the asset’s next push toward the $2.50 level dependent on key price zones.
To this end, FenzoFxBroker analysis indicated that for the asset to reclaim $2.50, the resistance at $2.35 remains a key level to clear.
In a TradingView post on May 3, the analysis suggested that a clear break above this barrier could pave the way for a push toward the psychologically significant $2.50 mark, an elusive level in recent trading sessions.
XRP must hold above the $2.120 support zone to maintain its bullish bias. A failure to do so could signal weakness, potentially leading to a decline toward the $2.034 support.
If this level is breached, further downside risk could extend to $1.924, marking a deeper retracement within the current trading range.
XRP traders lean bullish
Indeed, if on-chain data is any indication, XRP is likely to reclaim the $2.50 level, considering that most investors are leaning bullish.
In this regard, data from Binance Futures shared on May 4 indicated that 71.54% of traders with open positions in XRP are betting on upward price movement. However, caution is warranted, as such an imbalance in positions could increase volatility, especially if the price moves against the crowded side.
As things stand, XRP is trading in line with the broader cryptocurrency market, as the asset currently lacks key catalysts to support sustained price growth.
Notably, investor optimism could rise if the case between Ripple and the Securities and Exchange Commission (SEC) is concluded. Speculation persists that the legal drama may be nearing a resolution, with key Ripple officials reportedly meeting with the SEC.
Additionally, developments around a potential XRP spot exchange-traded fund (ETF) approval in the U.S. could be a major catalyst. The SEC has delayed decisions on several applications, with the next announcements expected in June and mid-October this year.
XRP price analysis
At press time, XRP was trading at $2.20, down about 0.6% in the last 24 hours. The asset is also red on the weekly chart, down 1.5%.
The price has remained relatively stable despite releasing over one billion XRP from the Ripple escrow account.
At its current price, XRP is trading just below its 50-day simple moving average (SMA), suggesting short-term resistance while remaining above the 200-day SMA of $1.91, indicating a bullish long-term trend.
The 14-day Relative Strength Index (RSI) at 53.44 reflects neutral momentum, aligning with broader market sentiment.
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