Ripple (XRP) surged 10% to reach $2.59 on Wednesday following a landmark announcement that the U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Ripple. How high can XRP price reach before retracing?
Ripple (XRP) Price Surges 10% to Hit $2.60 as SEC Drops Charges Against
Ripple (XRP) experienced a strong price rally on Wednesday, climbing 10% to a high of $2.60 as news of the lawsuit’s dismissal spread across the crypto market.
The Ripple price rally followed an official statement from Ripple CEO Brad Garlinghouse, who confirmed via a four-minute video on X (formerly Twitter) that the SEC had officially ended its legal pursuit of the company.
The price rally was accompanied by a surge in XRP trading volume, reflecting renewed investor confidence and fresh inflows of capital. Data from CoinMarketCap also showed showed a 24-hour volume increase of over $7.4 billion, highlighting strong market participation.
The conclusion of the lawsuit has had an immediate and positive impact on XRP’s market performance. Following the announcement, XRP’s price surged by 13%, reaching nearly $2.56.
Notably, Bitcoin (BTC) price also experienced a 2.2% increase, climbing to $84,096, while Ethereum saw a 6.6% rise, reaching $2,031. These movements suggest that the resolution of Ripple’s legal squable with the US regulator has had a positive ripple effect across the broader crypto markets.
Ripple CEO Brad Garlinghouse Confirms End of Five-Year-Long Litigation
In his video address, Garlinghouse expressed relief and optimism, emphasizing that the SEC’s decision to drop the case represents a victory not just for Ripple, but for the broader cryptocurrency industry. He criticized the SEC’s enforcement approach, arguing that the lawsuit had created unnecessary uncertainty for investors and blockchain innovators.
The lawsuit, originally filed in December 2020, alleged that Ripple had conducted an unregistered securities offering by selling XRP tokens.
Throughout the case, Ripple maintained that XRP should not be classified as a security, pointing to its decentralized nature and practical utility in cross-border payments.
A landmark ruling in July 2023 had already determined that XRP sales on secondary markets did not constitute securities transactions, dealing a significant blow to the SEC’s case.
With the dismissal of all remaining charges, Ripple can now focus on expanding its business operations and fostering new collaborations in the financial sector. Market watchers expect increased engagement from institutional investors, who had previously been hesitant to engage with XRP due to the bearish overhang of the SEC litigation.
Rising Volumes of XRP Long Leverage Positions Raise Liquidation Risks
While the lawsuit’s dismissal has fueled a bullish narrative, rising leverage in the derivatives market has introduced potential risks.
The Coinglass derivatives market analysis chart below below indicates that trading volume has surged by 199.11%, reaching $15.07 billion, while open interest has increased by 17.98% to $3.71 billion. This sharp rise in leveraged trading suggests growing investor confidence but also heightens the risk of liquidation if price momentum falters.
XRP’s long/short ratio over the past 24 hours stands at 0.9853, indicating a near balance between long and short positions.
However, a deeper dive into exchange-specific data reveals a different picture. On Binance, the long/short ratio among accounts is at 1.8458, and for top traders, the ratio jumps to 1.9197, signaling a significant tilt toward long positions. Similarly, OKX traders hold a 1.39 long/short ratio, reinforcing the heavy bullish sentiment in the market.
Despite optimism, the growing leverage poses a risk of liquidation. Data shows that in the past 12 hours, $29.15 million worth of positions were liquidated, with $17.26 million coming from long positions and $11.90 million from shorts. The 24-hour liquidation total stands at $30.89 million, with $18.81 million in long liquidations, suggesting that overleveraged traders are at risk of forced sell-offs.
If XRP fails to maintain support above $2.50, cascading liquidations could drive sharp price swings, triggering a potential retracement. Conversely, if the price consolidates above this critical level, the rally could extend toward $2.70 and beyond.
XRP Price Forecast: Close Above $2.50 Support Could Confirm Next Leg-Up
XRP price action remains bullish following the SEC lawsuit resolution, with technical indicators suggesting further upside potential if key support levels hold. Currently trading at $2.4917, XRP is testing the $2.50 psychological level, which coincides with the middle Bollinger Band around $2.3455. A daily close above this level would solidify bullish momentum and set the stage for a potential continuation toward the upper Bollinger Band at $2.7325.
The Relative Strength Index (RSI) sits at 53.67, indicating mild bullish momentum. A move above 60 would signal strong buying pressure, potentially fueling an extension toward $2.70 and beyond. Additionally, trading volume remains elevated at 386.28 million XRP, reinforcing investor interest. However, if bulls fail to defend the $2.50 level, a retracement toward the lower Bollinger Band at $1.9585 could materialize, with further downside risk if momentum weakens.
While the 30.27% rally over the past four days highlights bullish strength, XRP remains vulnerable to profit-taking. A failure to close above $2.50 may result in short-term consolidation or a pullback. However, a confirmed breakout could trigger another leg up, positioning XRP for a challenge of the $3.00 psychological resistance in the coming weeks.
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