Ripple’s XRP is in a tough spot right now, holding just above the important $2.00 level. It is stuck between the growing excitement about a spot ETF getting approved and the ongoing trouble from its legal battle with the SEC.
Traders are keeping a close eye on two big events—the possible end of the SEC lawsuit and the chance that a spot ETF might get approved. What happens next could play a significant role in determining whether XRP gains momentum soon and may also significantly impact its long-term direction.
XRP Price Tests Key Support Levels
After three straight days of falling prices, XRP is now trading within a narrow range between $2.03 and $2.12. This steady movement often signals that a significant price shift may be near, although it remains unclear whether XRP will move up or down. Experts following the market, including analysts from FXStreet, highlight the $2.00 level as a key short-term support. If XRP falls below $2.00, it could lead to further losses, with potential lower targets at around $1.96, $1.90, and $1.86.
On the other hand, if XRP holds above $2.00 and starts to climb, it could bring new strength to buyers. In that case, the next major test would be near $2.23, where the 50-day simple moving average is located — a level that could either stop further gains or help XRP build momentum if broken. Currently, XRP is at a critical stage, and its behavior in the coming days could determine its next major move.
Ripple Finds Relief in Legal Pause
One reason traders are feeling a bit more confident is the pause in the SEC’s lawsuit against Ripple. On April 17, the U.S. Court of Appeals for the Second Circuit agreed to a request from both Ripple and the SEC to freeze the appeal for 60 days. This move suggests that both sides are working toward a final decision.
Ripple’s Chief Legal Officer, Stuart Alderoty, announced that the SEC will hold $50 million of a previous $125 million penalty in escrow. CEO Brad Garlinghouse confirmed that Ripple has reached a settlement with the SEC staff, but it is still awaiting approval from the SEC commissioners.
XRP Spot ETF Gaining Momentum
As legal issues become clear, interest in an XRP spot ETF is rising. If Ripple settles with the SEC by mid-2025, a U.S.-based XRP ETF could be approved as early as next April. Regulatory clarity is key, as the SEC typically avoids approving crypto ETFs unless the assets are clearly defined as non-securities.
Brazil’s launch of the first XRP spot ETF by Hashdex, now trading on the B3 exchange, may prompt U.S. regulators to act more quickly as global demand for regulated cryptocurrency products grows. Several firms, including Grayscale, 21Shares, and WisdomTree, are exploring XRP-based ETFs in the U.S., with Grayscale considering converting its XRP Trust into a spot ETF.
Global Influence and Ripple’s Expansion
Ripple is working diligently to expand its global presence, despite its ongoing legal battle with the SEC. The company is forming more partnerships and expanding its presence in international markets, particularly in regions such as Asia and Europe, where regulations for digital assets are becoming clearer. Ripple’s On-Demand Liquidity (ODL) platform is gaining popularity, particularly in countries such as the Philippines and Japan. This growth is important for Ripple as it broadens its operations beyond the U.S. market.
SEC’s Stance on Crypto Regulation
The SEC’s ongoing focus on Ripple and other crypto assets has led to more discussions about the need for clearer regulations. With many in the crypto industry calling for a defined regulatory framework, the SEC’s decisions on Ripple and similar cases could set examples for how the industry will be governed in the future. Some advocates believe that more straightforward guidelines are important for encouraging innovation and attracting larger investors into the market.
Final Thoughts
XRP is at a critical point. It’s staying just above the $2.00 mark, but that could change quickly. The price depends on two big things: the outcome of Ripple’s legal battle with the SEC and the possible approval of an XRP spot ETF. If either of these goes well, XRP could go up. However, if the price falls below $2.00 or the legal case drags on, it may decrease instead.
The recent pause in the lawsuit gives hope that a settlement is near, and that’s making investors more confident. At the same time, Ripple is expanding into global markets, particularly in Asia and Europe, where cryptocurrency regulations are more established. If the legal case ends well and the U.S. approves an XRP ETF, it could bring more trust and investors to XRP. For now, XRP’s future depends on what happens in the courtroom and how regulators respond.
