Ripple’s native cryptocurrency, XRP, showed modest gains on Thursday, buoyed by broader market optimism following a U.S. court decision that blocked former President Trump’s proposed tariffs. At the time of writing, XRP was trading around $2.28, reflecting renewed investor confidence amid shifting regulatory and macroeconomic dynamics.
The U.S. Court of International Trade ruled that Congress holds exclusive constitutional authority over international trade, which cannot be overridden by presidential emergency powers. This landmark decision has eased trade-related market anxieties and contributed to a positive sentiment across digital assets.
👉 Discover how market-moving events can create breakout opportunities for XRP.
SEC Announces Agenda and Panelists for DeFi Roundtable
The U.S. Securities and Exchange Commission (SEC) has officially released the agenda and lineup for its upcoming cryptocurrency roundtable on June 9. Titled “DeFi and the American Spirit,” the event will be held at the SEC’s headquarters in Washington, D.C., signaling a growing institutional interest in decentralized finance.
The panel will feature nine prominent figures from the blockchain and financial innovation sectors, including Jill Gunter from Espresso Systems, Omid Malekan from Columbia Business School, Rebecca Rettig of Jito Labs, and Peter Van Valkenburgh from Coin Center — a leading crypto policy research organization.
Hester M. Peirce, SEC Commissioner and head of the agency’s crypto working group, emphasized the transformative potential of DeFi:
“DeFi embodies the promise of crypto by enabling people to interact without intermediaries. I look forward to learning from our panelists how we can foster a regulatory environment where DeFi can thrive.”
This roundtable is widely seen as a pivotal moment for U.S. crypto policy, potentially shaping future regulations that could either encourage innovation or impose restrictive frameworks. Market participants are closely watching for any signals regarding XRP’s classification and the broader treatment of utility tokens.
Technical Outlook: Can XRP Confirm a 14% Breakout?
XRP’s bullish momentum from early May has been overshadowed by strong bearish pressure over the past two weeks. The price remains under distribution, with a near-term downside target at $2.20 — a key psychological and technical support level closely monitored by traders.
On the 4-hour chart, XRP continues to trade below critical moving averages: the 50-period, 100-period, and 200-period exponential moving averages (EMAs). This alignment reinforces short-term bearish momentum. Additionally, the Relative Strength Index (RSI) has reversed below the 50 midpoint, indicating weakening bullish strength.
A bearish crossover in the Moving Average Convergence Divergence (MACD) — where the blue MACD line dips below the red signal line — could trigger further downside momentum. Key liquidity zones to watch include $2.20, $2.21, and the deeper demand area at $2.00.
Despite these headwinds, a potential bullish reversal pattern is forming: a descending wedge. This pattern is characterized by two converging downward trendlines, suggesting diminishing selling pressure and declining volume — often a precursor to an upward breakout.
Traders are watching for a confirmed breakout above the upper trendline, accompanied by rising volume, to validate the pattern. If confirmed, the projected upside target is approximately $2.63, representing a 14% gain from current levels. This target is calculated by measuring the widest distance within the wedge and projecting it upward from the breakout point.
👉 See how technical patterns like descending wedges can signal major price moves in real time.
Derivatives Data: Declining Open Interest Signals Bearish Sentiment
XRP’s derivatives market is flashing cautionary signals. Open interest (OI) across futures and options contracts has dropped by about 4.6% in the past 24 hours, falling to **$4.67 billion**. This decline coincides with a nearly **50% surge in trading volume**, reaching $4.45 billion — a combination that typically indicates widespread position unwinding.
The data suggests that long (bullish) positions are being closed at a much faster rate than short (bearish) ones. Over the past day, long liquidations totaled approximately $8.5 million**, compared to just **$713,000 in short liquidations. This imbalance points to growing risk aversion among leveraged traders.
A falling OI amid rising volume often reflects market deleveraging — a defensive move ahead of anticipated volatility. With the SEC DeFi roundtable and key U.S. economic data on the horizon, traders may be reducing exposure to avoid potential liquidations.
Frequently Asked Questions (FAQs)
Q: What does declining open interest mean for XRP?
A: A drop in open interest suggests traders are closing positions, often signaling weakening momentum. When combined with rising volume, it typically indicates market participants are exiting trades — a bearish sign in an already pressured market.
Q: How does funding rate affect XRP’s price?
A: The funding rate balances perpetual futures prices with spot prices. A consistently positive rate reflects bullish sentiment, while a negative rate indicates bearishness. Sharp changes can precede reversals, especially during high volatility.
Q: What is a descending wedge pattern?
A: It’s a bullish reversal formation where price makes lower lows and lower highs within converging trendlines. A breakout above the upper trendline with strong volume often signals the start of an uptrend.
Q: Why is the SEC’s DeFi roundtable important for XRP?
A: The event could influence how decentralized tokens are regulated in the U.S. Clearer rules may reduce uncertainty, boost investor confidence, and potentially benefit XRP if it’s treated as a non-security utility token.
Q: What role do moving averages play in XRP trading?
A: EMAs like the 50, 100, and 200-period act as dynamic support/resistance levels. Trading below them indicates bearish control, while a sustained move above could signal a trend reversal.
Q: How might PCE inflation data impact XRP?
A: The Personal Consumption Expenditures (PCE) index is the Fed’s preferred inflation gauge. Higher-than-expected readings could delay rate cuts, strengthening the dollar and pressuring risk assets like cryptocurrencies.
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Final Thoughts
While XRP faces near-term bearish pressure reflected in technical indicators and derivatives activity, catalysts like the SEC’s DeFi roundtable and potential bullish chart patterns offer hope for a rebound. A confirmed breakout above the descending wedge could propel XRP toward $2.63 — a 14% upside — especially if regulatory clarity boosts investor sentiment.
However, traders should remain cautious. Declining open interest and dominant long liquidations suggest vulnerability to further downside, particularly ahead of major economic releases. Monitoring RSI, MACD, and volume will be essential in confirming any sustainable reversal.
As regulatory narratives evolve and technical conditions align, XRP stands at a crossroads — one that could define its trajectory for the rest of 2025.