XRP Rallies 3% As Ripple, SEC Move To End Appeals

Key Insights:

• XRP jumped 3.36% after Ripple dropped its cross-appeal.
• Whale wallet count hits record high, signaling strong accumulation.
• Ripple expects SEC to drop appeal, ending four-year legal battle.

XRP jumped over 3% after Ripple dropped its cross-appeal in the SEC lawsuit. Whale accumulation and rising sentiment suggest traders anticipate a breakout as legal tensions ease and the SEC is expected to withdraw its own appeal soon.

XRP gains on legal breakthrough, market eyes $10 target

XRP spiked more than 3% Friday after Ripple CEO Brad Garlinghouse confirmed the firm will no longer pursue its cross-appeal against the United States Securities and Exchange Commission (SEC). In a post on X, Garlinghouse said the SEC is expected to do the same, marking a possible end to a legal battle that has lasted over four years.

“Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal,” he wrote, calling it a moment to “close this chapter once and for all.”

Within five hours of the post, XRP surged 3.36% to $2.18, according to CoinMarketCap. The move followed several months of consolidation and comes as broader crypto sentiment remains muted.

Ripple pivots after court’s partial injunction ruling

The announcement came one day after District Judge Analisa Torres denied a joint motion from Ripple and the SEC requesting a revised judgment. The motion sought to reduce a $125 million civil penalty and reverse a previous ruling that classified XRP’s institutional sales as securities offerings.

“The Court found that Ripple’s willingness to push the boundaries… evinces a likelihood that it will eventually… cross the line,” Torres said in her decision.

Ripple’s legal counsel Stuart Alderoty responded by stating that the court had offered two options: drop the appeal or continue challenging the prior finding on institutional sales. Alderoty confirmed the firm chose the former.

“Either way, XRP’s legal status as not a security remains unchanged,” Alderoty said.

XRP whales show signs of renewed accumulation

Beyond legal developments, on-chain data suggests XRP whales may be positioning for a breakout. According to CryptoQuant, whale flows based on the 90-day moving average turned positive in early May after four months of negative movement.

This shift came after a prolonged correction phase between Jan. and Apr., which had previously pushed prices lower. Notably, similar whale accumulation patterns in Aug. 2024 led to a 420% XRP price rally in Q4 last year.

Wallet data from X supports this trend. The number of wallets holding over 1 million XRP reached an all-time high of 2,850. Meanwhile, those holding over 10,000 XRP rose 6.2% year-to-date to 306,000.

Futures trader Dom noted the trend signals “growing investor confidence” despite subdued short-term price action.

Sentiment rebounds despite stalled $50M SEC settlement

XRP’s legal clarity appears to be improving, though the overhang remains. On June 26, Judge Torres again blocked a proposed private settlement between Ripple and the SEC, stating that “the parties do not have the authority to agree not to be bound by a court’s final judgment.”

Despite the setback, Santiment data shows XRP sentiment recently hit a 17-day high, buoyed by Ripple’s announcement and market anticipation around a settlement resolution. That optimism stands in contrast to fading interest in Bitcoin and Ethereum, which have both traded sideways for weeks.

Social chatter on X echoed this rebound. One post from John Squire (@TheCryptoSquire) read: “Brad Garlinghouse confirms the SEC is expected to do the same… XRP ready for the next era.”

Technical traders have also responded to the news. An X user going by Captain Redbeard shared a chart predicting a rebound with an eventual $10 target, stating: “XRP is ready to bounce from here… Next stop: $10 — see you there!”

Investors await final move from SEC

While Ripple has officially dropped its cross-appeal, the SEC has yet to file its withdrawal. Garlinghouse, however, said he expects the agency to follow through, citing prior indications from the regulator.

If confirmed, the move could end one of the longest-running legal battles in the crypto space. The SEC first filed its lawsuit in Dec. 2020, alleging that Ripple raised $1.3 billion through unregistered securities sales.

In Aug. 2024, Judge Torres imposed a $125 million fine on Ripple, down from the SEC’s initial $2 billion demand. Garlinghouse called it “a victory,” noting it represented a 94% reduction.

Whether the regulator exits the case entirely remains uncertain. But for now, XRP’s market appears to be pricing in optimism, with rising whale activity and social sentiment aligning behind what could be a turning point.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.