Ripple and the US Securities and Exchange Commission (SEC) have reached a $50 million settlement agreement, pending judicial approval. A joint motion filed in the US District Court for the Southern District of New York seeks to lift the injunction against Ripple and release $125 million in retained penalties.
As of Friday, Ripple (XRP) price is consolidating gains around $2.31, with a slight intraday decline. The joint motion submitted by Ripple and the SEC on Thursday indicates that both parties have agreed to settle, subject to judicial approval.
Meanwhile, XRP’s performance over the past 24 hours reflects the broad bullish trend in the cryptocurrency market, with Bitcoin (BTC) surpassing $100,000 for the first time since early February.
Other altcoins are moving in tandem with Bitcoin, signaling a return of risk-on sentiment in the market following the signing of a limited bilateral trade agreement between the US and the UK.
The agreement maintains a 10% tariff on UK goods by the former administration and fairly expands agricultural access for both countries while reducing stringent tariffs on UK auto exports.
Crypto investors have welcomed this trade agreement, which could set a precedent for dozens of anticipated deals during the 90-day tariff delay window.
Ripple and SEC Sign $50 Million Settlement Deal
Ripple and the SEC have filed a joint motion in the US District Court for the Southern District of New York, signaling an impending resolution. According to the filing, both parties have agreed to settle the litigation, with Ripple paying a $50 million penalty. Additionally, the SEC and Ripple have requested an indicative ruling to lift the injunction against Ripple and release the $125 million in retained penalties. Ripple will pay $50 million to the SEC, and the remaining funds will be returned to the company.
Judge Analisa Torres of the Southern District of New York had previously penalized Ripple $125 million for selling XRP to institutional investors—a figure significantly lower than the SEC’s initial demand of $2 billion.
Judge Torres also ruled that Ripple’s listing of XRP on exchanges for investors to purchase on the open market did not violate securities laws. The SEC appealed Judge Torres’s ruling, and Ripple filed a counter-appeal. Both parties have now agreed to withdraw their respective cases, paving the way for a final conclusion to the lawsuit filed in December 2020.
This settlement occurs amid a series of changes at the SEC, which has significantly scaled back its investigations and lawsuits targeting cryptocurrencies. Paul Atkins, a pro-crypto nominee of the former administration, was sworn in as SEC Chairman in April.
Atkins has pledged to provide a solid regulatory foundation for digital assets, eliminating uncertainty while fostering innovation. During an SEC crypto task force roundtable in April, the chairman acknowledged that innovation in the crypto industry had been suppressed for years.
XRP Uptrend Gains Momentum for Potential Breakout
XRP price is preparing for a significant breakout, with the uptrend regaining strength despite selling pressure near the Supertrend indicator. A flip of this indicator below the price could significantly alter market dynamics, signaling a shift from bearish to bullish sentiment. When the Supertrend indicator moves below the XRP price, a buy signal is confirmed, and its color changes from red to green.
The Moving Average Convergence Divergence (MACD) indicator supports a short-term bullish outlook after crossing above the centerline. As the MACD line (blue) crosses above the signal line, a buy signal is confirmed. Further confirmation may follow as the green histogram bars expand.
Similarly, the Relative Strength Index (RSI) indicator stands at 61.01, supporting bullish momentum. A continued move toward the overbought region would indicate strong tailwinds, supporting an extended rebound in XRP price toward the $3.00 level.
XRP/USDT Daily Chart
As the Supertrend indicator constrains XRP’s upward trend, a climb in the RSI above 70 into overbought territory could trigger a challenge and potentially a reversal. Traders should prepare for all scenarios, including a decline to the $2.21 support level, where the 50-day and 100-day Exponential Moving Averages (EMAs) converge. A deeper drop could target the 200-day EMA at $2.00.
Frequently Asked Questions
What does the Ripple-SEC settlement mean for XRP?
The $50 million settlement between Ripple and the SEC signals a potential end to the long-running legal dispute. If approved, it could remove regulatory uncertainty, boost investor confidence, and pave the way for broader adoption of XRP in traditional financial markets.
How does the Supertrend indicator affect XRP’s price movement?
The Supertrend indicator helps identify market trends. If it flips below the XRP price, it confirms a buy signal and suggests a shift from bearish to bullish momentum. Traders often use this tool to gauge potential entry and exit points.
What are the key resistance levels for XRP to reach $3?
XRP needs to maintain support above $2.20–$2.30 and overcome selling pressure near the Supertrend indicator. A break above $2.50 could accelerate momentum toward the $3.00 target, provided overall market conditions remain favorable.
How does Bitcoin’s performance influence XRP’s price?
Bitcoin often sets the tone for the broader cryptocurrency market. A strong BTC performance, such as breaking above $100,000, tends to boost investor sentiment and capital inflow into altcoins like XRP, creating positive correlation effects.
What risks should traders consider when trading XRP?
Trading XRP involves market volatility, regulatory developments, and technical indicator flaws. Sudden news or broader market downturns can trigger sharp price swings. Always use risk management tools and avoid over-leveraging positions.
Where can I learn more about advanced trading strategies?
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This content reflects the author’s opinions and should not be considered investment advice. Readers are encouraged to seek independent financial advice before making any investment decisions. Understand the risks involved, as leveraged products like CFDs can result in the loss of your entire investment. These products are not suitable for everyone; invest cautiously.