XRP Price Drops 5% Despite Legal Settlement Progress – Ripple Technical Analysis Shows Mixed Signals
Rongchai Wang
Aug 18, 2025 10:38
XRP trades at $2.96 after 5.12% decline, testing key support despite positive SEC settlement news. Technical indicators show conflicting signals for traders.
Quick Take
• XRP currently trading at $2.96 (-5.12% in 24h)
• XRP RSI at 44.93 signals neutral momentum with potential oversold conditions developing
• Joint SEC status report filed August 15 indicates potential settlement, but price consolidates below resistance
What’s Driving Ripple Price Today?
Despite the promising regulatory developments over the past week, the XRP price has retreated from recent highs as profit-taking pressure emerges. The joint status report submitted by Ripple and the SEC on August 15, 2025, initially sparked optimism about a potential settlement resolution, but traders appear to be taking a cautious approach.
The recent 35% surge that occurred on August 13 brought significant institutional attention, with $31.26 million in inflows reported. However, this rapid appreciation has led to natural consolidation as the market digests these gains. Whale accumulation continues to provide underlying support, but short-term selling pressure from retail traders has pushed the XRP price below the critical $3.00 psychological level.
The legal clarity that emerged from the August 5 settlement initially boosted confidence, helping XRP defy its historical August decline pattern. However, the current price action suggests that while the fundamental outlook remains positive, technical resistance levels are proving challenging to overcome.
XRP Technical Analysis: Mixed Signals as Momentum Weakens
The XRP RSI reading of 44.93 places Ripple in neutral territory, though it’s approaching oversold conditions that could signal a potential bounce. This represents a significant decline from the overbought levels seen during last week’s rally, indicating that selling pressure has been absorbed.
Ripple’s MACD histogram shows -0.0315, confirming bearish momentum in the short term. The MACD line at 0.0272 remains below the signal line at 0.0587, suggesting that downward pressure could continue before buyers step in.
The Stochastic indicators paint a more concerning picture for XRP, with the %K at 13.14 and %D at 36.51, indicating that Ripple is approaching oversold territory. This could present a buying opportunity for traders looking for a reversal signal.
Ripple’s Bollinger Bands show the current price at 0.2679 of the band width, positioning XRP closer to the lower band at $2.82. The middle band at $3.09 now acts as immediate resistance, while the upper band at $3.36 represents the breakout level that bulls need to reclaim.
Ripple Price Levels: Key Support and Resistance
Based on Binance spot market data, XRP faces immediate resistance at $3.38, which coincides with recent rejection levels. The stronger resistance at $3.66 represents the next major hurdle that would confirm a continuation of the bullish trend established after the legal settlement.
On the downside, Ripple support levels are clearly defined. The immediate support at $2.73 aligns closely with the current trading range low of $2.94. This level has proven resilient during recent tests and represents a critical defense zone for bulls.
The XRP/USDT pair shows strong support at $2.15, though reaching this level would require a significant breakdown that seems unlikely given the positive fundamental backdrop. The 50-day SMA at $2.94 currently provides dynamic support and aligns with recent lows.
The 200-day SMA at $2.46 remains well below current prices, confirming that the overall trend for XRP remains bullish despite the recent pullback.
Should You Buy XRP Now? Risk-Reward Analysis
For swing traders, the current XRP price presents a compelling risk-reward setup. The legal clarity provides a strong fundamental foundation, while the technical pullback offers better entry levels than were available during last week’s surge.
Conservative traders should wait for a clear break above $3.38 resistance before adding positions, as this would confirm that the consolidation phase is complete. A stop-loss below $2.73 would provide a reasonable risk management level.
Aggressive traders might consider accumulating near current levels, given that XRP RSI approaching oversold conditions and the proximity to the 50-day SMA support. However, position sizing should account for potential further weakness toward $2.73.
Long-term investors benefit from the regulatory clarity that the SEC settlement provides. The whale accumulation pattern and institutional inflows suggest that smart money remains bullish on Ripple’s prospects, making current weakness potentially temporary.
Conclusion
The XRP price faces a critical juncture as positive legal developments clash with short-term technical weakness. While the 5.12% decline represents normal consolidation after a 35% surge, the key test will be whether Ripple can defend the $2.73-$2.94 support zone. Traders should monitor whether XRP RSI can hold above 40 and if buying interest emerges at current levels. The next 24-48 hours will likely determine if this pullback represents a healthy correction or the start of a deeper retracement in the XRP/USDT pair.
Image source: Shutterstock
