Ripple’s long-running legal drama with the U.S. Securities and Exchange Commission (SEC) took another twist this week—and not in XRP’s favor. Just when investors hoped for a smooth path toward resolution, Judge Analisa Torres hit pause on progress by denying a joint motion for an indicative ruling. The result? A swift 5% dip in XRP’s price, knocking it down to around $2.35 and reigniting concerns over regulatory uncertainty.
For many in the XRP community, this wasn’t just a legal hiccup—it was a frustrating delay in what has already been a multi-year tug-of-war between Ripple and the SEC.
XRP on Shaky Ground
After showing some resilience earlier in the month, XRP has started to lag behind other major altcoins. While Ethereum, Solana, and even Dogecoin posted notable gains ranging from modest to impressive, XRP’s 16% monthly performance has begun to look underwhelming in comparison.
Technically, XRP now faces a critical support level around a major trendline. Popular crypto analyst “Man of Bitcoin” warned that a breakdown below this line could trigger a deeper correction. He identifies the next potential support zone in the $2.19 to $1.79 range—a drop that could rattle short-term traders if selling pressure intensifies.
Data from Coinglass further reveals a shifting landscape. Open interest in XRP has dropped 6% to approximately $5.08 billion, and the 24-hour liquidation total has reached $22.86 million—an overwhelming portion of that ($20.37 million) coming from long positions. Clearly, leveraged traders were caught off guard.
Legal Setback Sparks Uncertainty
So, what exactly happened in court? The latest snag came when Judge Torres rejected a joint motion from Ripple and the SEC that aimed to clear the path for a final resolution. Specifically, both parties were seeking an indicative ruling that would potentially erase key portions of a prior judgment—namely, penalties for allegedly selling unregistered securities and a ban on certain XRP sales.
Judge Torres wasn’t convinced. In her view, the motion was procedurally flawed and could not be used to walk back substantial parts of an earlier ruling. Her firm stance suggests she expects Ripple and the SEC to go through proper legal channels if they want to revise past decisions.
This development sparked commentary from across the legal and crypto landscapes. Crypto lawyer John Deaton highlighted the irony of the SEC’s position, noting that after years of aggressively pursuing Ripple, it now appears to be walking back elements of its own legal stance. As Deaton put it, the agency has “burned through thousands of hours of legal and judicial resources”—only to reconsider fundamental aspects of the case.
Ripple’s Response and the Road Ahead
Ripple’s Chief Legal Officer, Stuart Alderoty, quickly stepped in to offer reassurance. Posting on X (formerly Twitter), Alderoty reminded the community that Ripple’s core legal victories remain intact—most notably, the determination that XRP is not inherently a security. He clarified that the court’s recent order was centered on procedural issues tied to Ripple’s cross-appeal, not a reversal of prior wins.
He also emphasized that both Ripple and the SEC remain aligned on working together to resolve the remaining issues. The two sides plan to return to court with a properly structured motion that may eventually lead to a resolution—one that could involve dissolving the injunction and negotiating a reduced fine.
Pro-XRP attorney Bill Morgan mapped out a potential legal sequence that could follow:
- A motion to the Court of Appeals requesting a limited remand.
- A subsequent motion to Judge Torres for approval of a mutually agreed-upon resolution.
- If approved, Ripple could dissolve the injunction and settle for a smaller penalty—possibly around $50 million—before both sides move to dismiss their respective appeals.
What’s Next for XRP?
While this week’s setback may not spell doom for XRP, it does reintroduce legal uncertainty just as momentum was building. Price-wise, XRP now finds itself at a crossroads. If it breaks below trendline support, traders may brace for another leg down. But if legal clarity emerges in the weeks ahead, sentiment could recover swiftly.
One thing is clear: the Ripple-SEC battle isn’t over yet, and until it is, XRP’s price may continue to reflect that volatility.
