Bitcoin attracted attention by hitting a new record weekly high, almost achieving $106,500. XRP, connected to Ripple Labs, is winning investors back as more people feel optimistic about the outcome of the Ripple vs. U.S. Securities and Exchange Commission lawsuit.

Even though XRP dipped down to $2.29 recently, a drop of 4.5% in the past 24 hours, many are now discussing the possibility that it could reach $3.00 soon.

XRP reached its recent maximum price at $2.44 but then slipped below the 20-day EMA at $2.33, which means the short-term trend may face pressure.

XRP Shows Mixed Signals After Resistance

Some investors are holding onto hope as they expect Judge Analisa Torres to support Ripple in the case. Even during its recent trial defeat on May 15th, when the court did not offer a settlement hint, Ripple says this setback is minor and has not affected its momentum.

XRP Faces Resistance as Ripple Legal Battle Intensifies

However, James Murphy (@MetaLawMan) and Bill Morgan, both legal experts, believe that challenges connected to the case are not fully solved, especially since the SEC’s ability to seek such settlements is still unclear under SEC Rule 60.

The price of XRP and its legal situation could change a lot after the SEC meets on May 22, a step that should help clear up any confusion.

If we look at the values of XRP, there are some signs of both strength and weakness. When BTC failed to break $2.50, the token began consolidating at the 0.236 Fibonacci retracement level, which is $2.26.

XRP Faces Resistance as Ripple Legal Battle Intensifies

Bullish Move May Push XRP Above $3

A rise above the 0.618 Fibonacci level at $2.54 may take the price to $2.83 and, if the market is bullish, to $3.29, just past the $3.00 mark and reaching the 1.618 extension target.

On the other hand, momentum indicators suggest caution. The MACD turned bearish this week when its line dipped below the signal line, hinting at weakening momentum that could continue unless things change.

XRP Faces Resistance as Ripple Legal Battle Intensifies

At the moment, with a Relative Strength Index (RSI) of 48.90, XRP is considered neither overbought nor oversold, making it possible for its price to move in any direction.

During this critical time, XRP is facing judgment from several different angles: the distribution of tokens, the outcome of the Ripple case, and the influence of the wider crypto market.