XRP price dropped sharply by 5% following Judge Analisa Torres' rejection of an indicative ruling in the ongoing Ripple-SEC lawsuit. This decision has injected uncertainty into the case, further weighing down market sentiment. With bearish momentum building due to potential settlement delays, Ripple’s Chief Legal Officer Stuart Alderoty has pledged to address the court’s concerns collaboratively. Despite testing critical support levels, analysts remain cautiously optimistic about a rebound.
Will the XRP Price Rally Stall?
While the broader altcoin market shows robust activity, XRP has underperformed with only 16% monthly gains—lagging behind peers like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), which surged 3–50%.
Post-court decision, XRP tumbled to $2.35**, erasing earlier weekly gains after facing strong resistance at **$2.60. The asset now teeters at a decisive technical juncture:
- Critical Trendline Test: A breach below this level could trigger a deeper correction toward $2.19–$1.79 support (per analyst “Man of Bitcoin”).
- Market Data: Open interest fell 6% ($5.08B), while **$22.86M in liquidations occurred—$20.37M** from long positions.
Legal Experts Weigh In on Ripple’s Next Moves
Judge Torres’ denial cited procedural flaws in the joint motion, which sought to nullify key penalties (e.g., securities sales injunction, full fines). Pro-XRP lawyer John Deaton noted the SEC’s abrupt reversal after five years of aggressive litigation.
Next Steps for Ripple and SEC:
- Collaborative Resolution: Ripple and the SEC will jointly revisit the issue with the court (per CLO Stuart Alderoty).
Potential Legal Sequence:
- File for limited remand at the Court of Appeals.
- Secure amended relief from Judge Torres (e.g., reduced $50M fine, lifted injunction).
- Dismiss appeals post-settlement.
Key Takeaway: XRP’s price trajectory hinges on legal clarity, with sideways movement likely until then.
Frequently Asked Questions (FAQs)
1. Why did XRP’s price drop?
The decline followed Judge Torres’ rejection of Ripple and the SEC’s joint motion, exacerbating uncertainty about case timelines.
2. What are Ripple’s immediate legal priorities?
Ripple aims to resolve procedural hurdles collaboratively with the SEC, focusing on modified penalties.
3. Can XRP recover its losses?
Analysts suggest a rebound is possible if critical support holds, but legal developments remain the primary driver.
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Market Outlook and Strategic Insights
- Technical Levels: Watch $2.19** as a pivotal support; resistance at **$2.60.
- Sentiment: Bearish dominance may persist until the lawsuit reaches a definitive resolution.
- Broader Context: Altcoin season continues, but XRP’s performance remains tethered to regulatory outcomes.
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Disclaimer: This content reflects market conditions and author perspectives. Conduct independent research before making investment decisions.