Profit-Taking Pauses Rally Following Double-Digit Surge
XRP retreated by 5% on Monday, cooling off after a sharp 13% surge late last week that followed the official conclusion of the Ripple vs. SEC legal battle. While the landmark resolution initially sparked aggressive buying, analysts say the latest dip reflects healthy profit-taking rather than a reversal of trend.
The 4-hour chart shows that XRP rallied strongly from the $2.85–$2.95 support zone, breaking through intermediate resistance before stalling below the $3.55–$3.60 supply area. This region has acted as a historical ceiling and remains the main hurdle for a sustained bullish breakout.
At present, XRP is consolidating near $3.31, with traders watching whether it can hold above the $3.00 psychological level. A confirmed break above $3.60 could pave the way toward $3.90–$4.00, while failure to defend $3.00 could lead to a retest of major support around $2.70–$2.75.
Market Sentiment: Legal Clarity Boosts Long-Term Outlook
The Ripple-SEC settlement removes years of regulatory uncertainty, potentially unlocking wider institutional adoption of XRP. “Legal clarity is a powerful catalyst for liquidity growth in any digital asset,” said one market strategist. “The pullback we’re seeing now is more about traders locking in short-term gains than any shift in fundamentals.”
On-chain data shows elevated trading volumes and significant whale participation during the initial post-settlement rally. While volumes have moderated, accumulation patterns remain intact, supporting the view that the correction may be temporary.
Key Technical Levels
- Immediate Resistance: $3.55–$3.60
- Short-Term Support: $3.00–$3.05
- Major Support: $2.70–$2.75
- Breakout Target: $3.90–$4.00
XRP’s short-term pullback appears to be a natural pause after an aggressive move higher, with legal clarity and strong technical structure still underpinning the longer-term bullish case. If buyers step back in above $3.00 and push through $3.60 resistance, the recent rally could resume, potentially testing multi-year highs in the weeks ahead.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.