XRP Lags Behind Following SEC’s Silence Amid Ripple’s Ongoing Legal Battle

Published: February 23, 2025, 05:00 GMT+00:00

XRP, the cryptocurrency associated with Ripple Labs, has recently shown signs of stagnation as the U.S. Securities and Exchange Commission (SEC) remains silent about its appeal strategy in the high-profile case against Ripple. This uncertainty has led to XRP’s underperformance relative to the broader cryptocurrency market, causing increased scrutiny among investors and analysts alike.

Recent Market Activity

On Saturday, February 22, XRP saw a slight increase of 0.19%, partially recovering from a significant drop of 4.40% triggered by exchange platform Bybit the previous day. The digital asset closed at $2.5767, in contrast to the overall market, which rose by 1.01%, pushing the total cryptocurrency market capitalization to $3.14 trillion. XRP’s recent performance highlights its ongoing struggles amidst evolving regulatory news that impacts investor confidence.

Regulatory Developments

The SEC’s prolonged silence regarding its appeal strategy in the Ripple case is a critical factor contributing to XRP’s lackluster performance. Since the departure of SEC Chair Gary Gensler, the agency has conducted several closed-door meetings and established a Crypto Task Force aimed at reviewing various aspects of cryptocurrency regulation.

Recently, the SEC has made notable decisions, including:

Dismissing its case against Coinbase, a cryptocurrency exchange.
Withdrawing its appeal in ongoing cases involving the Blockchain Association and Crypto Freedom Alliance of Texas (CFAT).
Delaying proceedings related to Binance until April, citing the need to reassess its position following leadership changes.

Despite these actions, the SEC has not publicly addressed its appeal-related brief, which contests a critical ruling on XRP programmatic sales. This lack of clarity has led many in the crypto community to express concern over the future of both Ripple and XRP.

Expert Insights

Fox Business journalist Eleanor Terrett offered insights into the complexity surrounding the Ripple case. Terrett noted that the legal proceedings related to Ripple are more intricate than those concerning Coinbase, primarily because Ripple has already been ordered by Judge Torres to pay a $125 million penalty. Moreover, Judge Torres will maintain jurisdiction over the case for a year to ensure compliance with the ruling.

From a legal perspective, Terrett discussed the SEC’s potential pathways, indicating that while the agency could drop its appeal, it would necessitate negotiations concerning the penalty reduction and potential acceptance from Judge Torres. The situation remains uncertain, prompting commentary from legal experts deeming the current climate "uncharted territory."

Implications for XRP’s Future

XRP’s future price trajectory appears heavily influenced by two primary factors: the SEC’s forthcoming appeal strategy and the potential approval of XRP spot Exchange-Traded Funds (ETFs). Should the SEC withdraw its appeal, XRP could see a significant price surge, potentially exceeding its historic high of $3.5505, with the $4 mark as the next target. Conversely, the continued appeal could lead XRP prices to dip towards $1.50, creating a risk of further investor damage.

Additionally, the SEC’s approach to ETF applications will undoubtedly shape market confidence. Final deadlines for ETF reviews loom in October, offering time for the agency to modify its stance. A withdrawal of the appeal could open avenues for XRP-spot ETFs, enhancing bullish sentiment, while approval of ETFs under unresolved appeal conditions might instill uncertainty among institutional investors.

Current Price Action and Technical Analysis

Following the Bybit-sparked sell-off, XRP currently rests below its 50-day Exponential Moving Average (EMA) yet remains above its 200-day EMA, with EMAs signaling bearish trends. Should XRP manage to break above the 50-day EMA, it may rekindle bullish momentum towards the $3 range. However, a drop below the vital $2.5 threshold could lead to the bears targeting the $1.9299 support level and potentially testing previous lows.

A current Relative Strength Index (RSI) reading of 45.83 indicates that XRP may approach further declines before reaching oversold conditions, defined by an RSI below 30. ## Conclusion

XRP’s trajectory remains a closely watched aspect of the regulatory landscape, particularly as developments regarding the SEC’s appeal decision unfold. Additionally, broader macroeconomic factors, including U.S. tariffs and Federal Reserve policy shifts, may influence investor behavior in the cryptocurrency market. As the situation develops, stakeholders must remain vigilant, as any forthcoming SEC decision regarding the Ripple case could catalyze significant price movements in XRP.

For continuing updates and in-depth analysis, readers are encouraged to stay connected to our reporting.

About the Author: Bob has over 28 years of experience in the financial industry, focusing on currencies, commodities, and global equities. His insights span various global markets, with a primary emphasis on European and Asian financial landscapes.