XRP, the cryptocurrency tied to Ripple, fell by 5% following a court decision in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
Judge Analisa Torres rejected a joint motion by both parties for an indicative ruling — a move that added new uncertainty and triggered a negative market reaction.
📉 XRP Tests Key Support as Price Slips
Following the court's decision, XRP dropped to $2.35, continuing a downward correction from $2.60 earlier this week, totaling nearly a 10% drop from its recent peak.
From a technical standpoint, XRP is now testing a critical trendline. According to trader Man of Bitcoin, a break below this level could lead to a further drop toward the support zone between $2.19 and $1.79.
Data from Coinglass shows that open interest in XRP has fallen 6% to $5.08 billion. Over the past 24 hours, liquidations totaled more than $22.8 million, the majority being long positions.
⚖ Legal Battle Continues – Ripple Plans to Reengage
The rejected motion sought to avoid two main outcomes:
🔹 A court order prohibiting the sale of XRP as an “unregistered security”
🔹 And a full monetary penalty.
The judge, however, found the motion procedurally improper, as it attempted to override portions of a previous ruling.
Attorney John Deaton noted that the court emphasized how the SEC spent five years aggressively building its case — only to now suggest much of that work might be set aside.
Judge Torres also outlined specific requirements for both Ripple and the SEC to justify a reversal of her earlier decision — including demonstrating that it would serve the public and institutional investors’ interests.
🗣 Ripple’s Response
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the company will reengage with the SEC and bring the issue back to court. On platform X, he wrote:
“Today’s ruling does not change Ripple’s earlier wins (e.g., XRP is not a security, etc.). This is a procedural issue regarding denial of Ripple’s request. Ripple and the SEC are aligned in resolving the matter and will revisit it with the court.”
🧾 What Could Happen Next? A Possible Legal Path
Attorney Bill Morgan, a longtime supporter of XRP, outlined a possible sequence:
🔹 After a new indicative ruling, both sides would ask the appeals court to temporarily return the case, enabling a mutually agreed solution.
🔹 Judge Torres would then receive a motion outlining the agreement.
🔹 After lifting the injunction and finalizing a reduced $50 million penalty, both Ripple and the SEC could withdraw their appeals at the Second Circuit.
📊 Market Awaits Clarity
While other altcoins like Ethereum, Solana, and Dogecoin have surged recently, XRP has remained relatively steady.
Now, the coin faces legal and technical pressure. The next price movement will likely depend on how discussions between Ripple and the SEC unfold.
Traders are closely watching the $2.19 support zone — a drop below it could trigger further downside momentum.
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