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Ripple Drops SEC Cross-Appeal, XRP Soars

Ripple Drops SEC Cross-Appeal, XRP Soars

XRP experienced a significant surge, outperforming the broader crypto market, following Ripple's decision to drop its cross-appeal against the U.S. Securities and Exchange Commission (SEC). This move signals a potential end to the protracted legal battle, instilling renewed confidence among investors and triggering a notable price increase for the cryptocurrency.

Ripple Drops SEC Cross-Appeal, Igniting XRP Rally

Ripple Labs announced its decision to drop its cross-appeal against the SEC, a move that is expected to be reciprocated by the regulator. This development marks a pivotal moment in the years-long legal dispute, which began in December 2020 when the SEC sued Ripple over its XRP sales, alleging they violated securities laws. The anticipated resolution of this legal uncertainty has been a major catalyst for XRP's recent price surge.

Brad Garlinghouse, CEO of Ripple Labs, stated that the company is "closing this chapter once and for all" and focusing on building the "internet of Value." This sentiment, coupled with the potential for regulatory clarity, has significantly boosted investor confidence.

Trio of Catalysts Fuels XRP's Outperformance

XRP's impressive 5.5% climb to $2.19 in the last 24 hours can be attributed to a confluence of factors:

  • Regulatory Clarity: The withdrawal of the cross-appeal by Ripple, and the expected reciprocal action from the SEC, is thinning the regulatory fog that has long overshadowed XRP. This clarity is crucial for attracting sidelined investors.
  • Robinhood Micro Futures Launch: The introduction of XRP micro futures on Robinhood provides traders with greater flexibility to bet on the cryptocurrency's future price direction or hedge existing positions, given their smaller size.
  • Strong On-Chain Data: On-chain data reveals a bullish setup for XRP. The XRP Ledger recorded over 1.1 million active addresses in the past week. Furthermore, the number of wallets holding over 1 million XRP reached a new high of 2,850, and those with over 10,000 XRP increased by 6.2% year-to-date, indicating strong long-term investor conviction despite previous price stagnation.

Whale Accumulation and Price Targets

Recent data from CryptoQuant indicates that large XRP holders, or "whales," have been accumulating the cryptocurrency. The 90-day moving average of XRP whale flows turned positive in early May, reversing a prolonged period of negative flows. This shift suggests that whales are positioning themselves for a significant price movement.

Historically, similar accumulation activity in August 2024 preceded a 420% rally for XRP in the fourth quarter. The current inflows surpass last year's levels, hinting at renewed confidence among these large investors.

Technical analysis suggests XRP is eyeing a 75% breakout from a symmetrical triangle pattern. If this pattern holds, XRP could reach approximately $3.81 by July. However, the $2.34–$2.40 range is identified as a key resistance zone, with over $525 million in potential liquidations clustered within. A decisive move above $2.34 could trigger a short squeeze, propelling the price towards $2.40 and potentially setting the stage for further upside.

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