Ripple’s recent legal victory with the Securities and Exchange Commission (SEC), which concluded a prolonged five-year dispute, initially sparked a surge of enthusiasm among traders. This excitement, however, appears to have cooled, with XRP experiencing a 2% dip in the last 24 hours, sliding from $3.19 to $3.14. The cryptocurrency had touched an intraday peak of $3.32 at 8:00 am before succumbing to heavy selling pressure later in the day.
Profit-Taking and Market Dynamics
The sharp dip in XRP’s price, particularly the notable $3.20 to $3.15 drop on substantial volume at 7:00 pm, underscores the natural ebb and flow of market sentiment following such a significant legal win. Market analyst, Sarah Linden, notes that “after a run-up like this, it’s not unusual to see traders cash out some gains. What we’re observing is likely a mix of profit-taking and position rebalancing.”
Despite the pullback, support at $3.13 remains robust. This level has been tested multiple times, and the late-session bounce back to $3.14 suggests that buyers are still interested, with volume spikes of 3.21 million and 4.45 million indicating a certain level of dip-buying enthusiasm.
Regulatory Clarity Meets Macro Uncertainty
The resolution of Ripple’s legal challenges has undeniably removed a cloud of uncertainty, potentially paving the way for increased institutional investment. Since the settlement announcement, daily trading volumes have surged by an impressive 208% to $12.4 billion, and open interest has similarly climbed. This increased activity highlights a renewed confidence among traders and institutions alike. As explored in our recent coverage of Bitcoin, Ether, XRP price bump, the market sentiment has shifted to ‘Greed’, reflecting broader bullish trends.
However, the broader crypto market is far from insulated from macroeconomic factors. “While XRP’s regulatory clarity is a positive sign, we can’t ignore the overarching economic conditions,” says Tom Everett, a leading cryptocurrency strategist. He points to ongoing international trade tensions and evolving monetary policies as significant influences on market sentiment.
Navigating the Technical Terrain
Technically, XRP faces a defined trading range with support at $3.13 and resistance between $3.27 and $3.32. The intraday volatility, marked by a 6% swing, suggests that traders are closely watching these levels. The heavy selling during the 7:00 pm hour, marked by the session’s heaviest volume print, hints at coordinated institutional action, possibly signaling strategic sell-offs rather than panic.
Analysts are keenly observing whether XRP can break above the $3.27 resistance, which could renew upward momentum. The persistence of institutional inflows post-settlement, coupled with macroeconomic developments, will likely play a critical role in shaping XRP’s trajectory in the coming months. This follows a pattern of institutional adoption, which we detailed in our analysis of SBI’s Bitcoin–XRP ETF filing in Japan.
What Lies Ahead for XRP?
The road ahead for XRP seems to be one of cautious optimism. With the legal shackles removed, the cryptocurrency stands at a crossroads, poised for potential growth yet tethered by broader market forces. The key questions now revolve around the sustainability of current support levels amid further profit-taking, the potential for a breakout above resistance, and the impact of external economic factors.
As the dust settles from the regulatory saga, traders and analysts alike are left to ponder: Will XRP capitalize on its newfound freedom, or will macroeconomic headwinds overshadow its progress? Only time will tell, as the market continues to navigate this intricate landscape.
Source
This article is based on: Ripple-SEC Rally Cools as XRP Drops 2% on Heavy Profit-Taking
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
