XRP price has climbed nearly 10% today, trading at $2.30. Despite the landmark $50 million settlement between Ripple and the U.S. Securities and Exchange Commission (SEC), the market response has been surprisingly muted. Many investors expected a strong upward surge following the resolution of one of the most watched legal battles in crypto history. So why hasn’t XRP rallied? And more importantly—what’s next for its price trajectory?
XRP Price Stalls Despite Legal Clarity
On May 8, XRP surged alongside Bitcoin, which briefly touched $104,000. That same day, the SEC and Ripple finalized a $50 million settlement, officially closing a critical chapter in their prolonged legal dispute. Yet, despite this major regulatory win, XRP failed to sustain momentum and is currently down slightly at the time of writing.
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The lackluster price movement can be attributed to broader market dynamics. Bitcoin’s dominance in investor attention has created a “risk-on” environment—but primarily focused on BTC and select large-cap altcoins. As a result, capital rotation into other assets like XRP has been delayed.
Moreover, markets often "buy the rumor, sell the news." Much of the bullish sentiment around Ripple’s case had already been priced in during earlier stages of the lawsuit’s developments. The final settlement, while significant, did not come as a surprise—limiting its immediate impact on price action.
Technical Outlook: Signs of a Reversal?
Despite short-term stagnation, technical indicators suggest that XRP may be laying the foundation for a future rally.
On the daily chart, XRP formed a bullish engulfing candle on May 8—signaling strong buying pressure after breaking out of a multi-month descending channel. This channel had constrained price movement since late 2024, pushing XRP from highs near $3.40 down to a low of $1.60. The breakout above the upper trendline marks a potential shift in market structure from bearish to bullish.
Key resistance levels to monitor include:
- $2.35: Immediate hurdle; a close above this level could flip it into support.
- $2.70: The 23.6% Fibonacci retracement level of the prior downtrend.
- $3.67 and $4.59: Longer-term targets if bullish momentum accelerates.
However, confirmation is still needed. The Supertrend indicator has yet to turn bullish, which will only occur if XRP stabilizes above $2.35. Until then, traders should remain cautious about aggressive long positions.
Conversely, a drop below the $2.00 support zone could signal a failed breakout and open the door to retesting the $1.79 level—a previous swing low that has historically acted as strong support.
The MACD (Moving Average Convergence Divergence) remains cautiously optimistic. Since its bullish crossover in early April, the indicator has maintained positive momentum despite recent volatility. While there have been false signals, the underlying trend suggests growing accumulation and potential for upward movement once broader market conditions stabilize.
Rising Open Interest Signals Growing Confidence
Market sentiment appears to be turning increasingly bullish, as evidenced by rising open interest (OI) in XRP futures.
According to on-chain data, XRP open interest recently reached **$4.23 billion**, the highest level since March 4. While still below the all-time high of $7.86 billion, this resurgence indicates renewed trader engagement and growing confidence in XRP’s price outlook.
Additionally, the OI-weighted funding rate has climbed to 0.0115%, reflecting increased leverage in long positions. This suggests that traders are positioning themselves for a potential upside breakout—especially if Bitcoin’s rally begins to plateau and capital rotates into undervalued altcoins.
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Regulatory Tailwinds: More Than Just a Settlement
Beyond price charts and trading metrics, the legal resolution brings tangible benefits for Ripple and XRP holders.
In the final court order, the SEC agreed to dissolve its injunction against Ripple and release the previously frozen $125 million escrow payment. Of that amount, $50 million will go toward the settlement, with the remainder returning to Ripple’s control. This unlocks liquidity for the company and removes long-standing overhangs that dampened institutional adoption.
Importantly, this outcome reinforces XRP’s classification as a currency rather than a security—a pivotal precedent in U.S. crypto regulation. That clarity could pave the way for renewed exchange listings, greater institutional investment, and expanded use cases in cross-border payments.
Frequently Asked Questions (FAQs)
Why isn't XRP rallying after the SEC settlement?
While the $50 million settlement resolves a major legal uncertainty, much of the positive sentiment was already priced in. Additionally, Bitcoin’s dominance in current market narratives has diverted investor focus away from altcoins like XRP.
Is XRP still bullish technically?
Yes. The breakout from a multi-month descending channel and formation of a bullish engulfing candle suggest potential for further upside. A sustained move above $2.35 would strengthen this outlook.
What are the key price levels to watch for XRP?
Watch $2.35** as immediate resistance, followed by **$2.70, $3.67**, and **$4.59 as longer-term targets. On the downside, **$1.79** remains strong support if $2 fails to hold.
Could institutional demand boost XRP soon?
With regulatory clarity now established, institutions may reconsider exposure to XRP. The release of previously locked funds also improves liquidity and operational flexibility for Ripple.
When might XRP see its next major rally?
A rally is more likely once Bitcoin’s current surge cools down and capital begins rotating into altcoins. Increased open interest and positive technical patterns suggest XRP is preparing for such a move.
Does the SEC ruling set a precedent for other cryptos?
Yes—the decision reinforces that certain digital assets can operate outside securities law if they function as decentralized currencies. This could benefit other projects facing similar regulatory scrutiny.
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Final Thoughts: Patience May Reward XRP Holders
While XRP hasn’t exploded post-settlement, the fundamentals and technical setup point toward a favorable medium- to long-term outlook. The combination of resolved litigation, improving market structure, rising open interest, and renewed institutional potential creates a compelling narrative.
For now, patience is key. With Bitcoin commanding headlines and capital flow, altcoins like XRP are taking a backseat—but history shows that rotation often follows major BTC milestones.
As market conditions evolve and confidence grows, XRP could emerge as one of the top beneficiaries of improved regulatory clarity in 2025.
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