XRP Clings to $2.34 as Traders Brace for SEC Showdown

Market Awaits Crucial SEC Meeting

XRP is hanging tough near its 50-day moving average of $2.34, with all eyes on a critical U.S. Securities and Exchange Commission meeting this Thursday, May 29. Traders are on the edge of their seats, craving some regulatory clarity that could shake things up.

Speculation Heats Up Amid Legal Drama

Despite the legal rollercoaster, XRP's been cooped up in a tight weekly range of $2.29 to $2.47. It's up 7% over the last month and 1.4% in just the past day. CoinGlass data shows open interest spiked 2.25% to $4.76 billion, while XRP derivatives trading volume surged 25.82% to $3.14 billion in the last 24 hours. It's clear that speculation is on fire and traders are jockeying for position.

Spot Trading Volume Explodes

Spot trading volume also rocketed up 40% to $1.86 billion, showing that interest in XRP is skyrocketing. All this attention is now laser-focused on the SEC's closed-door meeting, which could reignite settlement talks with Ripple.

Tensions Boil Over After Judge's Ruling

Things heated up earlier this month when Judge Analisa Torres shot down the SEC's bid to tweak her final ruling by lifting XRP's institutional sales ban and slashing Ripple's $125 million fine. After the rejection on May 15, XRP tanked from $2.65 to $2.26, revealing the growing investor jitters.

Thursday's Meeting Could Be a Game-Changer

This Thursday's meeting might just provide the quorum needed to get negotiations rolling again. Legal eagles, including pro-XRP attorney John Deaton, think the SEC would have to admit XRP is a commodity for any real progress, a move that could totally reshape the legal landscape and pump up institutional confidence.

No Deal Could Mean More Legal Battles

If no deal's struck, the court could force the SEC to resume its appeal or give more time if both sides show they're serious. The appeals court could even throw out the SEC's case on technicalities, though that's a long shot.

Technical Indicators Show Mixed Signals

On the technical side, XRP's caught in a state of limbo. The relative strength index is sitting at 51, showing neutral momentum. The stochastic oscillator hints at short-term upside potential with a possible buy signal from oversold levels. But the moving average convergence divergence is still a bit bearish.

Bollinger Bands Tighten, Signaling Big Move Ahead

Meanwhile, Bollinger Bands are squeezing tighter around the current price, hinting that a major move could be just around the corner. A drop below support could open the door to more downside, but a break above the upper band might kickstart some serious bullish momentum.

Long-Term Support Holds Firm

Despite the mixed short-term signals, XRP's still trading above crucial long-term moving averages, showing that the deeper structural support is holding strong. If it breaks above $2.47, XRP could make a run for $2.65 again. But if it falls below $2.29, it risks continuing the correction toward $2.20. For now, XRP's stuck in a tight range, waiting for its next big catalyst.