The price of the Ripple coin (XRP) increased by 8% after the settlement of the conflict with SEC.

Due to the conclusion of the years-long litigation between Ripple and SEC, the XRP coin is showing a significant rise today. However, there is a risk of profit-taking that threatens to interrupt the rally.

Let’s figure out what is happening in the Ripple market XRPUSD and what to expect from the cryptocurrency’s price.

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Bearish signals are appearing in the XRP market

The difference in MVRV Long Short, which is at a 31-month low, indicates a rise in profits for short-term holders. The low level of this indicator suggests that STHs, who typically sell quickly, may take profits. This creates a bearish sentiment in the market.

In implementing such a scenario, XRP risks facing difficulties in overcoming key resistance levels. Additionally, the rise in STH profits may lead to an increase in speculative sales, especially if the altcoin’s price fluctuates in the short term.

Meanwhile, the Ichimoku cloud at the time of writing also indicates bearish sentiment, which typically signals a downtrend. However, the price bars are approaching a potential breakout above the Ichimoku cloud. If the candles successfully overcome the cloud, it could mark the beginning of a shift in market sentiment.

XRP Forecast: A breakout of resistance is needed for a rise

XRP rose by 8% in the last 24 hours, driven by overall market optimism and the resolution of the Ripple case with the SEC. As a result of the agreement, Ripple will pay $50 million of the original $125 million fine, while the remaining $75 million will be returned. This news supported the rise in the price of XRP, which at the time of writing this analysis is trading at $2.29.

The altcoin is facing serious resistance at the level of $2.38, which has not been overcome for more than seven months. If short-term holders decide to sell at current prices, this may limit XRP’s ability to break through this resistance. This could keep the altcoin in a range between $2.38 and $2.12, preventing a breakout.

If XRP can overcome the $2.38 mark and hold above it, this could mark the beginning of a sustainable rise. A breakthrough of this level will open the way to $2.56, which will change the current neutral-bearish forecast. Such success will indicate investor confidence and may lay the foundation for further long-term achievements.

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