XRP is trading 8.17% higher on Friday at $2.39, extending its weekly gain to 8% and monthly climb to 30.5%. The rally follows Thursday's news of a formal settlement agreement between Ripple and the U.S. Securities and Exchange Commission (SEC), a development that could bring final closure to a multiyear legal battle that has loomed over the cryptocurrency.
According to court filings, the SEC and Ripple jointly requested the dissolution of the $125 million civil penalty and injunction stemming from the August 2024 ruling. If approved, Ripple would retain $75 million from the escrowed penalty while paying the remaining $50 million to the SEC. In exchange, both parties would drop their appeals.
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While the deal signals a regulatory reset under the newly crypto-friendly SEC leadership, Commissioner Caroline Crenshaw publicly dissented. Crenshaw criticized the agreement as weakening investor protection and undermining judicial authority, suggesting it creates a regulatory vacuum by nullifying the earlier penalty and injunction.
She also warned that the settlement may incentivize future violations by failing to uphold existing standards.
Despite the internal SEC pushback, traders are responding favorably. XRP’s recent momentum has been further fueled by broader market strength and technical indicators. According to CoinDesk, XRP has broken above resistance, a signal often interpreted as a bullish trend reversal. The price now sits just above the closely watched $2.38 resistance level.
However, analysts caution that short-term holders (STHs) may cap further upside. Metrics like the MVRV Long/Short difference are at a 31-month low, indicating rising profitability among recent buyers—many of whom may look to take profits near current levels. This behavior could create selling pressure just as XRP attempts to confirm a breakout.
XRP must turn $2.38 into support to sustain its rally. A move above that level could pave the way toward $2.56 and potentially $3.00, but failure to hold current gains could see a retest of $2.12 support. Market watchers are also eyeing further institutional and ETF-related developments as potential catalysts.
With the lawsuit seemingly in the rearview and bullish signals aligning, XRP enters a new phase. A successful breakout could reinvigorate longer-term investors, while any faltering near resistance may reinforce a more cautious, range-bound outlook.
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