XRP Returns to $2.40 in Price U-Turn: What Comes Next?

XRP recovered to $2.41 on Saturday, following two days of declines after reaching a high of $2.59 on March 19.

XRP had a major week, with its price surging as much as 15% to $2.59 on Wednesday after Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) dropped its appeal in the Ripple case.

The SEC’s 2020 case against Ripple was a landmark moment for the industry because it signaled a major escalation in the agency’s crypto enforcement efforts. The SEC sued Ripple in December 2020, saying that it violated the law by selling XRP without first registering it as a security.

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The XRP network also experienced a surge following the favorable news, with key stakeholder accumulation continuing and network utility soaring.

On-chain analytics platform Santiment stated in a March 19 tweet that XRP address activity is around six times higher in March than in January and February.  

Wallets with at least one million XRP now hold 2.82 billion more coins than two months ago, a 6.5% rise, with this class of XRP holders now possessing 46.4 billion coins. Address activity increased dramatically in March, with almost six times as many unique wallets engaging the network than in previous months.

What’s next for XRP price?

XRP breached the $2.50 resistance for the first time since March 3, reaching highs of $2.59 on March 19. Bulls’ attempts to sustain above this level were greeted by profit-taking, with the XRP price falling for two days before rebounding.

At press time, XRP was up 0.07% in the last 24 hours to $2.40. As it stands, bulls are attempting another breach over the daily SMA 50 at $2.44, which would allow XRP to retest the $2.50 barrier if successful.

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A breakout above these levels might pave the way for more gains, with XRP targeting $2.60 and $2.80. In the event of a dip, support is expected at $2.22, followed by crucial support at $2. Buyers are expected to strongly defend the $2 level, as failure to do so could result in a bearish head-and-shoulders pattern for XRP.