Date: Fri, March 21, 2025 | 09:14 AM GMT
In the cryptocurrency market, Ripple (XRP) recently secured a major legal victory. On March 19, the U.S. Securities and Exchange Commission (SEC) officially agreed to drop its lawsuit against Ripple, marking a significant win for the company and the broader crypto industry.
However, as the news was widely anticipated, XRP’s price saw a brief rally before taking a U-turn after facing strong resistance at a key moving average level. Despite a surge in on-chain metrics, the technical setup suggests that XRP still has a crucial hurdle to clear before confirming a sustained uptrend.
On-Chain Metrics Soar
Amid these legal developments, XRP investors appear to be accumulating at current levels. According to crypto analyst Ali Martinez, on-chain data reveals that the number of active XRP addresses has surged to nearly 627,000, the highest since April 2023.
Such a significant increase in network activity often signals growing investor confidence and could be an early indication of a potential bullish reversal. However, whether this on-chain strength translates into price action remains uncertain, as XRP faces a crucial resistance level.
Key MA Resistance Becomes a Crucial Hurdle
Following the SEC news, XRP surged to $2.58, but it failed to break through the 50-day and 100-day simple moving averages (SMAs), which have acted as strong resistance. The chart also shows a potential bearish head and shoulders pattern, adding to the uncertainty.
Currently, XRP is trading around $2.41 and remains stuck in the resistance zone marked in the chart’s blue circle. A successful breakout above this level could trigger a rally toward the next key resistance at $3.00, potentially invalidating the bearish setup.
However, if XRP fails to break above the resistance, it could lead to a pullback toward the $2.00 support zone before any potential bullish continuation.
What’s Next for XRP?
With the legal uncertainty behind Ripple, the focus now shifts to technical breakout levels and overall market sentiment. If bulls manage to push XRP above the key moving averages, the token could accelerate toward new highs, potentially targeting $3.00 and beyond.
On the other hand, if XRP struggles to clear this hurdle, traders should prepare for a possible short-term consolidation or a minor pullback before the next major move.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.