XRP price rallied briefly yesterday before reversing back to trade at $2.47 at press time. The gains occurred after reports emerged that Ripple would drop the appeal against the SEC and pay a fine of $50M, which is significantly lower than the $125M imposed by Judge Analisa Torres last year.
Despite the recent gains in Ripple price and the bullish developments in the SEC vs. Ripple case, three signals hint that the XRP bull run may be over.
XRP Price Prediction: 3 Signals the Bull Run May Be Over
A look at on-chain metrics, technical indicators, and derivatives market data provides 3 top reasons why the XRP bull run may be over.
Weekly Chart Shows XRP Price is Stuck in Consolidation
The weekly XRP price chart signals that the Ripple bull run may be over. This chart depicts that Ripple has been stuck in consolidation between $2.14 and $2.94 since December 2024, with no major breakout.
The RSI has also tipped south and made a series of lower highs. This shows that the buying pressure has dropped gradually in recent weeks. The red MACD histogram bars are also lengthening, which shows a shift in momentum and a bearish XRP price prediction.
The weak buying pressure hints at a lack of greed from traders and reduced optimism from traders that XRP price will resume its previous bull run. If Ripple falls below this consolidation zone, it could trigger a fall below the $1 psychological level.
XRP/USDT: 1-Week Chart
Fluctuating Social Volumes
Social volumes also suggests the XRP bull run may be over. Data from Santiment reveals a spike in social volumes whenever there is bullish news around XRP. This suggests that most traders are buying into the FOMO to book quick profits.
XRP Social Volumes
If social volumes continue to fluctuate with no sustained rise, it suggests that the XRP price will continue to face a sideways price movement until there is sustained long-term buying pressure.
For XRP price to maintain a bullish trajectory, buyers need to not only buy due to short-term bullish news but also hold their assets as they anticipate further gains.
Market May Have Priced In End of Ripple Case
The Ripple community has been rife with expectations about what the official ending of the SEC case could mean for XRP price. Each time a positive development emerges in this case, Ripple tends to record a strong rebound.
However, some analysts now believe the market has priced in the XRP lawsuit end. Popular analyst Dom noted that the market barely reacted to Ripple’s reduced settlement news. He opined,
“The lawsuit “news” is now officially over and non-reactive. As seen with flows, market barely cared for a few minutes on today’s news.”
Another analyst mnltrades on X also stated,
“Think about how much of the SEC Ripple case has already been priced in. The case has been concluded, now what? What else can $XRP holders look forward to?”
The SEC vs. Ripple lawsuit was a major catalyst for price growth in the last five years. With the closure, XRP holders may have to wait for other bullish news such as the approval of a spot XRP ETF or a Ripple IPO filing to kickstart another bull run.
Summary
The XRP price bull run seems to be over. The altcoin is recording brief spikes in social volumes indicating that traders are only buying for short-term gains and not holding for the long-term. The bearish technical outlook and speculation that the SEC case may be priced in could also hinder gains.
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