XRP finally walked free from its four-year battle with the SEC, yet the token can’t seem to hold above the $3 mark. For many investors, this is confusing. If the biggest legal cloud hanging over Ripple is gone, why is the price not soaring? Let’s break it down.
Quick Takeaways
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XRP price is struggling to stay above $3 even after Ripple’s lawsuit ended.
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The wider crypto market sell-off, delays in ETF approvals, and technical pressure are weighing the price down.
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Long-term prospects remain positive, but short-term corrections could continue.
XRP Price Struggles Despite Legal Victory
When the lawsuit against Ripple ended, many believed it would unleash XRP’s next bull run. Instead, the opposite has happened. On August 26, XRP slipped back below $3 and is currently trading near $2.90 with daily trading volume above $7 billion.
This slump has little to do with Ripple’s legal issues anymore. The problem is the broader crypto environment and short-term uncertainty.
3 Key Reasons Why XRP Is Down After the Lawsuit
1. Market-Wide Crypto Correction
The entire crypto market has been under pressure. Bitcoin fell to the $110,000 level, triggering heavy sell-offs across altcoins like XRP, Ethereum, Solana, and Dogecoin.
Large-scale whale sales, cautious traders, and over $800 million in liquidations within 24 hours have all added to the bearish sentiment.
In simple terms: XRP isn’t falling alone. The whole market is red, and it’s pulling XRP down with it.
2. ETF Approval Delays
One of the biggest hopes for XRP bulls has been the launch of an exchange-traded fund (ETF). However, the SEC has once again delayed decisions on multiple XRP ETFs, including WisdomTree’s application.
With approvals now pushed to October, excitement around ETFs has cooled, reducing buying pressure.
Investors don’t like waiting. Every delay dampens confidence in the short run.
3. Technical Weakness
From a chart perspective, XRP recently broke below the key $3.05 Fibonacci support, a level many traders were watching closely. Falling below this zone has shaken investor confidence.
Still, the $2.75 demand zone remains intact. Some analysts argue that as long as XRP holds above this support, its broader bullish outlook isn’t broken.
The Bigger Picture for XRP
Even though the short-term looks shaky, there are still strong reasons for optimism:
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Ripple has announced upcoming projects like an XRP-powered credit card and even plans for an IPO launch.
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Institutional interest in blockchain adoption continues to grow, and XRP has positioned itself as a leader in cross-border payments.
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Historically, XRP tends to consolidate before strong moves, so current weakness may be part of a bigger setup.
Put simply: XRP’s price struggles aren’t about Ripple anymore. They’re about timing and market mood.
Final Thoughts
The end of the Ripple lawsuit removed one of XRP’s biggest roadblocks, but it doesn’t guarantee instant price growth. Broader market corrections, ETF delays, and technical breakdowns are holding XRP back for now.
In the long run, Ripple’s developments and institutional adoption may push prices higher. But in the short term, investors should prepare for more bumps on the road.
FAQs
1. Why is XRP price falling after Ripple won the lawsuit?
Because the entire crypto market is correcting, ETF approvals are delayed, and technical support levels have been broken.
2. Will XRP go up after the Ripple lawsuit is over?
Long-term, yes. The lawsuit win cleared a major hurdle, but prices still depend on overall market conditions.
3. What’s the key support level for XRP now?
Analysts are watching the $2.75 demand zone. Holding above it is critical for maintaining the bullish structure.
4. When will XRP ETF get approval?
The SEC has delayed decisions until October. Until then, ETF-related hype is likely to remain muted.
5. Is XRP still a good investment in 2025?
It depends on your risk tolerance. XRP still has strong fundamentals and Ripple’s real-world partnerships, but short-term volatility is expected.