The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing its conclusion, but despite this pivotal development, XRP has struggled to gain upward momentum. While regulatory clarity appears to be improving, market sentiment remains cautious, and technical indicators suggest further downside risk if key support levels fail.
Ripple Drops Cross-Appeal in Landmark SEC Case
In a major step toward resolving one of the most closely watched crypto lawsuits, Ripple has officially agreed to drop its cross-appeal against the SEC. This decision marks the effective end of a four-year legal saga that has significantly influenced the broader cryptocurrency regulatory landscape.
Stuart Alderoty, Ripple’s Chief Legal Officer, confirmed the move via social media, stating that the SEC will retain $50 million of the original $125 million penalty imposed by Judge Analisa Torres in August 2024. The remaining $75 million will be returned to Ripple. Additionally, the SEC will request that Judge Torres lift the injunction that previously restricted Ripple from selling XRP to institutional investors without registering the transactions as securities.
“Final details confirmed — this should be my last update on SEC v. Ripple… Last week, the SEC agreed to unconditionally drop its appeal. @Ripple now agrees to drop its cross-appeal. The SEC will keep $50M of the $125M penalty (already paid)…”
— Stuart Alderoty (@s_alderoty), March 25, 2025
With both parties dropping their appeals, the case is now effectively closed following formal court procedures. This resolution follows earlier news that the SEC would abandon its own appeal after former chairman Gary Gensler stepped down in January 2025. Under new leadership, the agency has shifted its approach, stepping back from aggressive enforcement actions against crypto firms in favor of pursuing clearer regulatory frameworks through legislation.
👉 Discover how regulatory shifts are shaping the future of digital assets.
Judge Torres’ original 2023 ruling was a partial victory for Ripple, determining that XRP sales to retail investors did not constitute unregistered securities, though institutional sales did. Her subsequent $125 million penalty was far below the $1.9 billion sought by the SEC, signaling judicial skepticism toward the agency’s broad application of securities law to digital tokens.
“Ripple’s case was a high-stakes test of the SEC’s enforcement-first strategy in crypto,” said Vuga Zade, COO at Bitget, in a statement to FXStreet. “Their retreat suggests growing recognition that clear legislation—not litigation—is the sustainable path forward.”
Market Reaction: Why XRP Isn’t Celebrating
Despite the legal win, XRP’s price action tells a different story. The token has remained range-bound, showing little reaction to what many consider a favorable outcome.
“Market response to Ripple’s legal resolution has been muted,” noted Agni Ling, Growth Lead at WeFi. “This case has been ongoing since 2020, and its resolution was largely priced in by investors long ago.”
The lack of a rally underscores a key principle in financial markets: expectations often matter more than outcomes. With much of the bullish sentiment already reflected in price prior to the final ruling, there was limited room for upside surprise.
XRP Technical Outlook: Downside Risks Mount Below $2.34
According to Coinglass data, XRP saw $4.43 million in futures liquidations over the past 24 hours, with $3.44 million coming from long positions—indicating renewed selling pressure.
XRP has been consolidating since bouncing off the upper boundary of a descending channel last Wednesday. It briefly spiked higher after news of the SEC’s appeal withdrawal but was rejected at the $2.60 resistance level. Since then, it has found temporary support at $2.34 but continues to trade below the 50-day Simple Moving Average (SMA), a bearish signal.
Key Levels to Watch:
- Support: $2.34 (recent floor)
- Stronger Support: $1.96 (potential downside target)
- Resistance: $2.60–$2.78 (SMA and psychological barrier)
- Upside Target: $3.40 (seven-year high)
If XRP breaks below $2.34 and the upper trendline of the descending channel, a drop to $1.96 becomes increasingly likely. Conversely, a decisive close above the 50-day SMA and $2.78 could open the path toward $3.40.
The Relative Strength Index (RSI) is hovering near neutral territory, while the Awesome Oscillator (AO) shows red bars above the zero line—suggesting weakening bullish momentum and possible consolidation ahead.
A daily candle close below $1.96 would invalidate the current bullish structure and could accelerate losses toward $1.35, particularly if broader market conditions turn risk-off.
👉 Explore real-time analytics and tools to track XRP’s next move.
Frequently Asked Questions (FAQs)
What is Ripple?
Ripple is a financial technology company focused on cross-border payments. It operates RippleNet, a global payments network built on blockchain technology that enables fast, low-cost international transactions for banks and financial institutions.
What is XRP?
XRP is the native cryptocurrency of the XRP Ledger, a decentralized blockchain platform designed for rapid value transfer. It is used to facilitate transactions within the network, particularly for institutional payment solutions offered by Ripple.
Is XRP a security?
In July 2023, Judge Analisa Torres ruled that XRP is not a security when sold to retail investors. However, institutional sales were deemed to fall under securities regulations. This partial classification has shaped the outcome of the SEC lawsuit.
How does the XRP Ledger work?
The XRP Ledger is a decentralized blockchain maintained by a peer-to-peer network known as the global XRP Ledger community. It uses a unique consensus algorithm—distinct from proof-of-work or proof-of-stake—that enables fast settlement and low energy consumption.
What is RippleNet?
RippleNet is Ripple’s proprietary payments network that connects banks and financial institutions worldwide. It leverages blockchain and digital assets like XRP to streamline cross-border transactions, reduce costs, and improve settlement times.
What does dropping the cross-appeal mean for Ripple’s future?
By ending all litigation with the SEC, Ripple gains regulatory certainty, allowing it to focus on product development, partnerships, and expanding its global footprint without ongoing legal distractions.
👉 Stay ahead with advanced trading tools and insights on emerging crypto trends.
Final Thoughts
While Ripple’s legal victory over the SEC represents a watershed moment for crypto regulation in the U.S., markets are already looking beyond this chapter. For XRP to reclaim bullish momentum, it will need more than regulatory clarity—such as increased adoption, stronger on-chain activity, or broader market recovery.
Until then, traders should remain cautious. With technical indicators leaning bearish and key resistance holding firm, XRP may face further downside before any sustained rally can take shape.
Core Keywords: XRP, Ripple, SEC lawsuit, XRP price prediction, Ripple vs SEC, XRP Ledger, cryptocurrency regulation, RippleNet