XRP tumbled to $2.09 on March 31, 2025, marking a steep 20% decline from its March 19 peak of $2.60 when Ripple claimed its long-awaited legal victory against the SEC. The cryptocurrency experienced a classic “sell-the-news” event as traders cashed in their profits following the regulatory breakthrough that ended a $1.3 billion lawsuit which had haunted the company since 2020.
XRP fell victim to classic crypto psychology: buy the rumor, dump the verdict.
Trading volume dipped 3% to $8.3 billion while open interest crept up 1.3% to $6.9 billion, suggesting traders are positioning themselves for future price movements. XRP earned the dubious honor of worst-performing top 10 altcoin with a 14.5% weekly loss.
The muted market response wasn’t entirely surprising. Many investors had already anticipated the SEC dropping its appeal, particularly after Ripple’s $150 million legal crusade established a precedent that rippled through the entire crypto industry—pun absolutely intended. This legal victory represents what Ripple’s CEO calls a beneficial win for the entire cryptocurrency industry.
Technically speaking, XRP is flirting with danger. The $2.00 support level—untouched since last May—is now within striking distance. The bearish trend line at $2.148 has been playing bouncer, refusing entry to higher price territories. It’s like XRP is wearing sneakers to a fancy club with a strict dress code. The token continues to trade below the 200-day Moving Average at $2.52, signaling persistent bearish pressure despite the legal clarity.
Whale activity tells an interesting story too. Large holders dumped a whopping 1.12 billion XRP (worth approximately $2.3 billion) within just 48 hours of the legal victory announcement. Talk about taking profits and running! The broader crypto market uncertainty that has affected Bitcoin’s trajectory has similarly impacted XRP’s recovery potential, with institutional ETF inflows becoming a critical factor for both cryptocurrencies.
Despite the gloomy picture, recovery hopes remain surprisingly robust. Analysts project a potential rebound to $2.71 if XRP can break above the $2.50 mark. The oversold technical indicators suggest the selloff may have reached exhaustion.
The long-term outlook appears even brighter with the prospect of an XRP ETF approval by year-end. Polymarket estimates an 86% chance of approval, which could trigger a flood of institutional investment.
Meanwhile, the XRP ecosystem continues to expand, with projects like ExoraPad exceeding presale expectations and keeping investor sentiment cautiously optimistic despite the current dip.
