Despite securing a landmark legal victory against the SEC, XRP has experienced a surprising 20% price plunge, dropping from $2.60 to $2.05 within a week of the settlement announcement. This unexpected downward spiral came after the cryptocurrency failed to maintain an initial 10% rally to $2.49, subsequently breaking below the critical $2.50 support level.
XRP’s legal triumph turned financial stumble as prices nosedived 20% despite SEC victory, breaking critical support levels.
The price decline resembles a championship team losing the post-victory parade—several factors contributed to this paradoxical outcome. Profit-taking by investors who had anticipated the legal victory played a significant role, alongside a broader cryptocurrency market correction. Reduced whale accumulation, as reported by Santiment, further dampened price momentum. The evolving global regulatory landscape continues to create uncertainty for traders navigating crypto markets even after legal victories.
Like a weather system forming perfect storm conditions, these elements combined with macroeconomic concerns, including Trump’s tariff threats, to accelerate the downward trajectory.
On-chain metrics paint a similarly concerning picture, with daily active addresses declining steeply despite overall network activity increasing sixfold in March. The XRP Ledger has reached 6.7 million total addresses, but whale transaction counts are trending toward pre-US election levels—think of it as the cryptocurrency equivalent of VIPs quietly exiting the party.
Technical indicators offer mixed signals. A bearish-to-bullish shift appears on three-line break charts, yet the MACD histogram suggests strengthening downside momentum. Bollinger Bands have widened—historically a warning sign of potential further declines. The formation of a Head and Shoulders pattern hints at a possible drop to $1.35, a thought that makes hodlers’ palms sweat. Analysts warn that breaking below the critical $2.00 support level could trigger a further decline to $1.20.
Nevertheless, recovery hopes persist. With the SEC dropping its appeal and Ripple agreeing to a reduced $50 million settlement, regulatory clarity may benefit XRP long-term. The SEC’s legal withdrawal has been celebrated as beneficial for the entire cryptocurrency industry, according to Ripple’s CEO. Analysts project ambitious price targets between $3 and $6, while whale investors have accumulated a staggering 46.4 billion XRP.
If the price breaks above $2.30, it could affirm a momentum shift and potentially validate AI-powered predictions of a 46% upside—proving that in cryptocurrency markets, today’s plunge can become tomorrow’s launching pad.
