XRP News Today: ETF Bets Hold While XRP Dips — All Eyes on SEC’s Next Move

By Bob Mason
Published: May 4, 2025

XRP Faces Market Pressure Amid SEC Developments

XRP, the digital currency associated with the Ripple network, has seen its value dip further as market participants react to ongoing developments concerning the U.S. Securities and Exchange Commission (SEC). Following a closed meeting on May 1, where the SEC did not withdraw its appeal in the Ripple case, XRP’s price fell by 0.97% to close at $2.1882 on May 3, after a previous decline of 0.14% on May 2. This downward trend reflects broader bearish sentiments across the cryptocurrency market, which recorded a 1.07% decline and brought the total market capitalization to approximately $2.94 trillion.

Anticipation Surrounds Upcoming SEC Meeting

Investors are particularly focused on the next SEC closed meeting, scheduled for May 8, amid speculation regarding a potential vote to formally withdraw the SEC’s legal challenge against Ripple’s programmatic sales of XRP. The desire for a resolution is palpable, as Ripple’s CEO, Brad Garlinghouse, previously expressed optimism that the SEC would drop its appeal, describing the situation as a "resounding victory for Ripple and for crypto." However, clarification from Garlinghouse indicated that while an agreement had been reached with the SEC’s staff, a formal vote by the Commission was still required, adding another layer of uncertainty.

Eleanor Terrett, a journalist and host of Crypto America, noted that even though the SEC has not yet made a definitive announcement, there is a likelihood that the Commission will address the Ripple case at the upcoming meeting. The anticipation for clarity reflects investors’ hopes for a positive move from the regulatory body.

Positive Sentiment for XRP-Spot ETF Approval

Despite the SEC’s murky status regarding the Ripple appeal, optimism for a U.S. XRP-spot Exchange Traded Fund (ETF) approval remains resilient. According to Polymarket, the odds for an approval by December 2025 have increased to 79%, a rise from 68% earlier in April. For the SEC to approve an ETF, it is generally believed that the Commission would need to withdraw its challenge to a crucial ruling made by Judge Analisa Torres in 2023, which established that the programmatic sales of XRP do not meet the criteria of the Howey Test, a key legal benchmark.

Notably, the SEC has recently extended its review period for Franklin Templeton’s XRP-spot ETF application by 45 days, a development that appears to coincide with the timeline for the SEC’s status report on the paused appeal. This convergence suggests a potential synchrony between ongoing legal discussions and regulatory actions.

XRP’s Price Outlook and Market Sentiment

In the near term, XRP’s price trajectory hinges on several pivotal factors, including the SEC’s official withdrawal of its appeal and any associated settlement terms. If the SEC withdraws its appeal and favorable outcomes arise, XRP could potentially test its all-time high of $3.5505. Conversely, ongoing delays or unfavorable rulings could see XRP retreat to support levels around $1.50. From a technical perspective, XRP is currently trading below the 50-day Exponential Moving Average (EMA) while remaining above the 200-day EMA. This indicates a bearish near-term trend, although long-term support remains intact. A breakout above the 50-day EMA could lead XRP bulls to target previous highs around $2.3621, while a decisive drop below the critical support level of $2.05 could open the door to test lower levels near the 200-day EMA.

Broader Market Dynamics

XRP’s performance continues to be influenced by overall market sentiment, along with external factors such as global trade tensions and economic concerns. Earlier in 2025, XRP experienced a surge to an intermediate high of $3.3999, driven by optimism related to the Ripple case and political support for cryptocurrency from former President Trump. However, increased trade tensions and economic uncertainty have pressured risk assets, suggesting that XRP’s movement will closely follow developments in regulatory clarity, legal proceedings with the SEC, and potential ETF approvals.

As investors await the SEC’s next steps, both the future of XRP and the broader cryptocurrency market remain poised on a delicate balance of regulatory outcomes and market sentiment.

Bob Mason is a seasoned financial journalist with over 28 years of experience in global rating agencies and multinational banks. He specializes in currencies, commodities, alternative assets, and global equities, focusing primarily on European and Asian markets.

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