XRP is facing short-term price uncertainty as positive announcements capable of bolstering its utility fail to reflect a positive price movement. Despite Ripple’s announcement that the XRPL EVM sidechain will launch on mainnet in Q2 2025, and Circle’s launch of USDC on XRPL, XRP has been plunging over the last three days. 

These bullish milestones are being overshadowed by broader market caution and an unresolved legal battle with the U.S Securities and Exchange Commission (SEC). However, the technical outlook of XRP is giving a glimpse of hope. While still bearish, the RSI and EMAs of XRP signal a potential shift in momentum. 

EVM Mainnet and USDC Integration Expand XRP’s Utility

Ripple recently announced that the much awaited XRPL EVM sidechain is set to launch in 2025. This update will allow Ethereum compatible smart contracts to operate in the XRP ledger (XRPL), which will bring a vast majority of decentralized applications to the network. Through this upgrade, developers will have access to tools that they already use on Ethereum while enjoying access to the speed and cost-efficiency of the XRP Ledger. 

What a great week in Singapore at @xrplapex ! 🇸🇬

The XRPL EVM is about to go live on mainnet. The organic interest is as massive as it is undeniable. The opportunities to leverage XRP for new platforms are as big as imagination💡

XRPL community look more ready than ever to… pic.twitter.com/OEUWptGa5S

— Peersyst Technology (@Peersyst) June 13, 2025

In another move that improves XRP’s utility, Circle announced the launch of USDC on the XRPL. This addition introduces a significant stablecoin to the ecosystem that enables faster payments, cross-border settlements, and simplified DeFi engagement. Collectively, all this deepens the value proposition of XRP among institutions and developers.

Legal Uncertainty Hangs Over XRP’s Price Action

The price of XRP is facing bearish pressure despite the increasing number of real-life use cases. SEC and Ripple filed a revised motion to reconsider crucial appeal on the securities offence after one such appeal in May failed. The new filing has been challenged by legal analysts who claim that it lacks any substantive ground that can change the decision made by Judge Torres. In case the court refutes it once again, Ripple may have to face additional limitations on retail XRP sales.

The possibility of a long-lasting court battle is likely to damage investor sentiment, and the threat of uncertainty has kept price dynamics weak. Most traders are holding off from committing large amounts of capital into XRP which justifies the present disconnect between bullish news and price action.

All the focus now shifts to Monday, June 16 when Ripple and the SEC have one last chance to end their longstanding dispute. Failure to end the case tomorrow could extend it to 2026. There is uncertainty among market participants as to whether a breakthrough will happen. Analysts caution that XRP could face more bearish pressure due to prolonged legal tussles between Ripple and SEC. This is regardless of the growing XRP infrastructure and institutional backing. 

RSI Signals Early Reversal, But the EMA is Still Bearish

On the technical outlook, the Relative Strength Index (RSI) of XRP has climbed to 42.30 after dropping to 28.24 only two days ago. This reversal is an indication that the selling pressure could be diminishing with buyers cautiously returning. However, the RSI is not yet above neutral 50, but the reversal out of the oversold level signifies a turning point toward recovery. 

Nevertheless, XRP traders must exercise caution. The 4 hour-chart on TradingView shows that the Exponential Moving Averages (EMAs) of XRP are bearish with the short-period averages below longer-term averages. This pattern is normally an indication that more downward price movement is impending, although it can be interrupted by powerful buying.

XRP is currently facing a crucial resistance at $2.28. A break-out above this level would fire up the start of a short-term rally towards the next target at $2.33. This would confirm a bullish reversal. It would also mean a recovery in investor sentiment after several weeks of deterioration.

However, the inability to break the resistance can stimulate another selling wave. If that happens, XRP may re-test the support at $2.05. Until Ripple obtains some legal certainty and technical indicator get better, XRP may continue to face a tug-of-war between increasing utility and investor sentiment.