Rumors surrounding a possible XRP-spot ETF filing sent XRP to a seven-week peak of $2.4813 on Sunday, May 12. However, uncertainty grew as BlackRock (BLK) did not confirm any discussions about XRP during its recent meeting with the SEC. This lack of clarity led to a decline, with XRP dropping to a low of $2.41 before finding some stability.
The latest price movements highlight how the SEC’s decision to drop its appeal and approve XRP-spot ETFs could greatly affect the market. A number of firms, such as 21Shares, Bitwise, Canary Funds, Franklin Templeton, Grayscale, and WisdomTree, have already submitted applications for XRP-spot ETFs. Just last week, the SEC postponed its ruling on the Franklin XRP Fund, pushing the decision back by an additional 45 days.
Uncertainty Around Ripple’s $125 Million Fine
The situation with the $125 million fine on Ripple, set by U.S. District Judge Annalisa Torres for selling XRP to institutional investors, is still unclear. This comes even though the same judge decided that XRP is a commodity. Steve Segal, a shareholder at BuchalterLaw, explains that the fine, related to Ripple’s unregistered XRP sale to institutional investors, hasn’t been fully resolved.
While the judge’s ruling that XRP is a commodity gives some legal clarity, the fine’s status still leaves questions, adding uncertainty to Ripple’s ongoing legal issues. This could be an important factor in the final result of Ripple’s case and its effect on the wider crypto market.
Legal Path and Next Steps in the Ripple Case
Until the court decides, XRP may stay uncertain, with no clear reason for price changes. Legal expert James Filan explained the possible next steps. First, Judge Torres might decide whether to lift the injunction and release the escrowed funds. The SEC would get $50 million, and the rest would go back to Ripple.
If this happens, both sides would ask the Second Circuit for permission to finalize the settlement. Once the remand is approved, both sides would file a formal motion to end the case. After the injunction is lifted and the funds are distributed, both the SEC and Ripple would ask to drop their appeals, ending the case.
XRP Dips to $2.40 Amid Legal and ETF Delays
On Monday, May 12, XRP saw a 4.24% decline, partially reversing the 5.44% gain from the previous day and closing at $2.40. This pullback came as the broader crypto market also faced a downturn, with the total cryptocurrency market cap dropping by 1.31%, settling at $3.28 trillion. The ongoing legal uncertainty and delays in approving XRP-spot ETFs have weakened demand for the token.
Several factors could impact XRP’s price, including any court rulings or updates regarding the appeals process, progress on XRP-spot ETF filings, and broader macroeconomic developments such as tariff-related news. From a technical standpoint, support is seen at $2.10, while a rise above $2.50 could lead to a potential test of $3.00 and even challenge XRP’s all-time high of $3.5505.
Bitcoin Stays Above $100K Amid Trade Deal Talks
Even though XRP faced major losses, Bitcoin (BTC) stayed above $100,000 for the third day in a row. The wider crypto market saw some profit-taking, but news of a possible US-China trade deal helped prevent further price drops.
On May 11, the White House announced progress on a trade deal with China, with more details expected on May 12. How the deal turns out could greatly affect the global market mood. If it includes no tariffs, it could encourage people to take more risks and invest in assets. On the other hand, if it includes high tariffs, it might make investors more cautious.
Final Thoughts
XRP’s price has changed due to several factors, including rumors about an XRP-spot ETF and the ongoing legal case with the SEC. The uncertainty around Ripple’s $125 million fine and the possible end of its lawsuit could greatly impact the token’s future price.
Even though there have been setbacks, like no confirmation from BlackRock and delays in ETF approvals, XRP still has the attention of both individual and institutional investors. Moving forward, legal updates, progress on ETF approvals, and broader market trends will be important in deciding where XRP’s price goes.
