XRP Price Prediction: $2.40 in Focus as Ripple Pushes SEC Reform
Ripple’s XRP is holding above the $2.00 mark after a sharp rally earlier this week, and the price action suggests...
Quick overview
- Ripple's XRP is currently trading above $2.00, showing resilience after a recent rally and positive regulatory developments.
- Ripple has proposed a 'lifespan framework' to the SEC, arguing that XRP should be treated as a commodity post-initial sale, which could reduce legal uncertainties.
- The technical structure of XRP remains constructive, with key support at $2.04 and resistance at $2.18, indicating potential for further upside.
- Market sentiment is improving due to reduced regulatory overhang and clearer rules, which could attract institutional participation.
Ripple’s XRP is holding above the $2.00 mark after a sharp rally earlier this week, and the price action suggests this move isn’t just technical noise. With XRP trading near $2.06 at last check, the market is digesting both a strong upside impulse and a meaningful regulatory development that could reshape how digital assets are treated in the US.
XRP briefly touched $2.10 before pulling back, but the retreat has been orderly rather than panicked. That resilience matters. It shows buyers are still engaged, even as the market pauses to reassess what comes next.
Ripple’s Proposal to the SEC Could Boost XRP and Shape Crypto Regulations
The latest catalyst comes from Ripple, which has formally submitted a proposal to the U.S. Securities and Exchange Commission during a critical window for crypto regulation. With Congress debating new market structure laws and the SEC reassessing its crypto approach, Ripple is pushing for what it calls a “lifespan framework.”
In simple terms, Ripple argues that a token like XRP should not be treated as a security forever just because it was once sold to fund development. The company warns against what it describes as a “zombie promise” problem, where obligations tied to early fundraising are unfairly imposed on today’s secondary market buyers.
Ripple’s position is that once the initial sale is complete, XRP should be treated more like a commodity, allowing it to trade freely on exchanges without legacy securities constraints. If regulators accept this logic, it could significantly reduce long-term legal uncertainty for XRP and similar tokens.
Why markets care:
- Reduced regulatory overhang improves investor confidence
- Clearer rules could unlock institutional participation
- XRP sentiment benefits from perceived policy momentum
🚨 RIPPLE PRESSES SEC TO LOCK IN XRP'S POST-LAWSUIT STATUS
In a powerful 9-page letter, Ripple is pushing a "lifespan of the obligation" framework:
✅ Securities law applies ONLY during the primary sale (when there's real privity & enforceable promises)
✅ Once that… pic.twitter.com/8EpOtNwYmf— CryptosRus (@CryptosR_Us) January 12, 2026
XRP Technical Structure Remains Constructive
From a chart perspective, XRP’s structure supports the improving fundamental tone. On the 4-hour chart, price surged from the $1.81 low, breaking a sequence of lower highs and triggering a sharp move toward $2.40 before cooling.
The pullback has so far respected the 0.618 Fibonacci retracement near $2.04, a level often associated with healthy trend continuation. XRP is also holding above the rising 50-period EMA and a flattening 200-period EMA, reinforcing the view that this is consolidation, not reversal.
Candlestick behavior tells a similar story. Recent sessions show small bodies and overlapping ranges, closer to spinning tops than bearish continuation patterns. Importantly, there’s been no aggressive follow-through selling and no bearish RSI divergence.
XRP/USD Key Levels and Trade Outlook
XRP is now compressing between clearly defined boundaries:
- Support: $2.04–$2.00
- Resistance: $2.18–$2.20
A decisive break above resistance would likely reopen upside toward $2.28, followed by a retest of $2.40–$2.41. On the downside, a sustained move below $2.00 would weaken the bullish structure and expose $1.92.
Trade idea:
Buy pullbacks near $2.02–$2.05, targeting $2.28 initially, with extension toward $2.40. Place a stop below $1.95 to manage downside risk.
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