XRP News Today! Ripple vs. SEC, Legal Developments and Market Impact, What’s Next for XRP?

On March 19, Ripple CEO Brad Garlinghouse revealed that the U.S. Securities and Exchange Commission (SEC) intends to withdraw its appeal against Judge Torres’ ruling on Programmatic Sales of XRP. However, the SEC has yet to formally comment on the matter, leaving uncertainty in the market.

In response, Ripple’s Chief Legal Officer, Stuart Alderoty, outlined proposed settlement terms that include:

1. A reduction in the penalty from $150 million to $50 million. Initially, the SEC had sought $2 billion.

2. The removal of an injunction restricting XRP sales to institutional investors.

The SEC’s next closed meeting, scheduled for April 3, could be pivotal in finalizing the appeal withdrawal. In the meantime, XRP has faced heavy selling pressure, plummeting 19% to $2.1088. If the SEC delays its vote, XRP could slip below $2.

Legal Experts Weigh In on the SEC Withdrawal Process

While optimism is high, legal analysts caution that a formal withdrawal may take time. Pro-crypto attorney Fred Rispoli suggested that the SEC Commission might vote on the matter within 30 days, with Judge Torres potentially vacating the injunction within the same timeframe.

“At most, we are 60 days out from this being 100%, formally, legally, and spectacularly over,” Rispoli stated.

XRP Market Performance and Outlook

On April 1, XRP rose by 2.35%, reversing its 2.24% loss from the previous day to close at $2.1389. However, it underperformed the broader crypto market, which saw a 2.81% gain, raising the total market capitalization to $2.7 trillion.

XRP’s future trajectory depends on several key factors:

1. SEC vs. Ripple Filings: Any motions related to the withdrawal of injunctions or case resolution could significantly influence market sentiment.

2. XRP Spot ETF Prospects: The potential approval of an XRP spot ETF in the U.S. could propel prices toward $3.5505. Conversely, delays in approval could limit gains.

3. Macro Risks: Economic factors such as trade tensions and recession concerns could push XRP down to $1.7938, while easing risks could support a rebound above $3.

Despite these considerations, technical indicators suggest bearish trends for XRP in the near term.

XRP Price Struggles Below Key Levels

XRP dropped over 5% on March 31 to a low of $2.06, increasing the risk of breaking below the crucial $2 threshold. The 200-day EMA at $1.94 is the last line of defense, and historically, falling below this level has led to accelerated declines.

XRP’s current technical structure is concerning, with a descending triangle pattern signaling an imminent breakdown. If support at $2 fails, the next major levels lie between $1.85 and $1.80. To reverse this trend, XRP must reclaim the $2.30–$2.40 range with strong volume.

Ripple Escrow Strategy and Supply Control

Ripple continues its strategic management of XRP supply, recently locking 700 million tokens in escrow. The firm releases 1 billion XRP monthly for institutional sales, operational costs, and liquidity but often returns a significant portion to escrow to stabilize the market.

In March, Ripple Labs opted not to release the scheduled 1 billion XRP, instead sending 700 million back into escrow. Analysts believe this move aims to control selling pressure and maintain price stability.

Ripple's ongoing control over more than 40% of the total XRP supply remains a topic of debate. While some investors see this as strategic supply management, critics argue it centralizes influence over the token's value.

SEC Case Resolution and Regulatory Impact

Ripple's legal battle with the SEC has shaped its market performance. A U.S. court previously ruled that XRP sales on public exchanges were not securities, but institutional sales required compliance.

In January 2025, the SEC appealed, arguing that Ripple’s promotional efforts led to profit expectations, classifying XRP as an unregistered security under the Howey Test. However, with President Donald Trump’s pro-crypto stance, the SEC dismissed its appeal, and Ripple agreed to pay a reduced $50 million fine.

Broader Crypto Market Trends

The crypto market remains volatile, with macroeconomic factors adding uncertainty. On April 1, Bitcoin surged 3.20% to $85,150 but remains at risk due to ongoing U.S.-China trade tensions.

Key Market Themes to Watch:

1. SEC vs. Ripple case resolution.

2. U.S. tariff developments and potential retaliatory actions.

3. Progress on the Bitcoin Act and broader crypto regulations.

4. U.S. labor market and inflation reports.

5. Institutional ETF inflows and outflows.

Conclusion: What’s Next for XRP?

At the time of writing this article on April 5, 2025, XRP was trading at $2.1588 with a gain of 4.82%. XRP’s near-term outlook remains uncertain, with potential downside risks if the SEC delays its case withdrawal. The $2 mark remains a crucial psychological and technical level.

If XRP fails to maintain support, further declines to $1.80 are possible. Conversely, positive regulatory developments and ETF progress could help push XRP toward $3.

Investors should remain cautious and monitor key legal and macroeconomic developments that could shape XRP’s future price action.