- XRP trades near $2.59 but faces resistance as the Bollinger Bands signal overbought level and elevated selling risk.
- Judge Torres denies Ripple-SEC motion, stalling legal progress and pressuring XRP’s bullish momentum.
- MVRV Z-score at 29.28 indicates overvaluation, raising potential for profit taking and short term price pullback.
XRP’s recent price movement had a sharp turn after a pivotal court decision impacted its legal proceedings. On May 15, U.S. District Judge Analisa Torres dismissed the joint motion by Ripple and the SEC requesting an indicative ruling.
This motion aimed to lift the court’s injunction that blocked XRP sales to institutional investors. Additionally, she denied the proposed reduction of Ripple’s $125 million penalty, calling the request procedurally improper. This slowed XRP’s bullish drive and pushed the price down to $2.3551.
Legal Standoff Continues Despite Mutual Agreement
The court decision followed months of settlement discussions between Ripple and the SEC. Both parties aimed to jointly resolve the long standing legal battle. However, according to Fox Business reporter Eleanor Terret, Judge Torres appears unwilling to grant an easy path forward.
She noted that Torres expects the parties to follow formal legal procedures and prove that a reversal serves the public interest. Pro-crypto attorney John Deaton also commented on the issue during a live session, according to Terret.
Deaton highlighted that the judge likely views the SEC’s recent change in strategy as an attempt to undo years of legal effort. Ripple’s Chief Legal Officer Stuart Alderoty clarified that the court’s ruling does not impact previous wins. He added that both Ripple and the SEC will now file a procedurally correct motion and revisit the issue together.
Technical Indicators Show Overbought Conditions
XRP’s price movement shows a strong uptrend, but caution is growing in the market. The token trades just under the upper Bollinger Band, at $2.5935. Its current position near this level suggests increased buying pressure, but the asset is nearing overbought levels.
The 20 day simple moving average is at $2.3076, while the lower band is at $2.0218. If the price fails to maintain momentum, it could retreat toward these support levels. Additionally, volume is elevated at 51.33 million, showing strong interest, but potential reversals depend on continued follow through.
Valuation Metrics Point to Possible Correction
On-chain data further indicates caution. The MVRV Z-score is at 29.28, far above the fair value zone. Historically, such elevated levels suggest the asset may be overvalued. This raises the risk of profit taking among holders, especially if market sentiment weakens.
On May 17, on the upside, XRP could push between $2.55 to $2.62 if buying pressure continues and legal cooperation progresses smoothly. However, a correction could drive XRP to $2.30 – $2.21 if profit taking emerges or momentum weakens near resistance.
Legal clarity remains critical, as the next step involves a joint motion seeking an indicative ruling. If granted, the parties can request a limited remand from the Court of Appeals. This could allow Judge Torres to approve a formal settlement and conclude the ongoing dispute.
