XRP News Today: Legal Uncertainty Sends XRP Below $2.10 Despite ETF Optimism

Legal Uncertainties Send XRP Below $2.1

Sentiment toward the SEC vs. Ripple case continues to dictate XRP demand. On Saturday, May 31, the token advanced 1.58%, partially reversing Friday’s 4.62% loss to close the session at $2.1747. Notably, the token dropped below $2.1 for the first time since May 6 before rebounding. XRP outperformed the broader crypto market, which rose 0.53% to a total crypto market cap of $3.23 trillion.

The SEC held its final closed meeting on May 29, raising hopes for a second SEC request for an indicative ruling on settlement terms. However, the SEC remained silent on the Ripple case.

On May 15, Judge Torres rejected the SEC’s request for an indicative ruling on lifting the injunction prohibiting XRP sales to institutional investors and lowering the $125 million penalty.

Since Judge Torres’ decision, XRP has fallen from $2.5712 to the May 31 low of $2.0801, highlighting investor unease over the ruling and the SEC’s silence. If Judge Torres rejects the settlement terms, Ripple may continue with its cross-appeal, and the SEC may progress with its appeal.

The SEC filed an appeal notice in October 2024, challenging the Programmatic Sales of XRP ruling. If the SEC successfully overturns the verdict, US exchanges may de-list XRP to avoid falling under the SEC’s purview. Furthermore, the SEC may disapprove XRP-spot ETF applications, a potentially significant blow to XRP’s price outlook.

Despite the ongoing Ripple case and the lingering threat of the SEC pursuing its appeal, investors remain optimistic about an XRP-spot ETF approval. According to Polymarket, the chances of the SEC approving an XRP-spot ETF by December 2025 stand at 89%, a record high.

XRP Price Outlook: Legal Moves and ETF Progress in Focus

Near-term price trends hinge on Ripple case-related developments and spot ETF-related news.

Crucially, if the SEC withdraws its appeal, XRP could aim to revisit its all-time high of $3.5505, with ETF approval potentially fueling a rally toward $5. Conversely, if the court rejects a potential second settlement request, it could drop to $1.50.

XRP Price Action

Daily Chart

After this week’s pullback, XRP trades below the 50-day Exponential Moving Average (EMA) while holding above the 200-day EMA, signaling bearish near-term sentiment.

A breakout above the 50-day EMA could signal a move toward the May 12 high of $2.6553. A sustained move through $2.6553 could pave the way to $3 and the 2025 high of $3.3999.

On the downside, a break below the 200-day EMA could expose the $1.9299 support level.

The 14-day Relative Strength Index (RSI) sits at 39.97, suggesting XRP could drop to $2 before entering oversold territory (RSI< 30).

Broader Market Outlook

XRP remains sensitive to legal developments and broader external events. The token had previously climbed to $3.3999 on Ripple case optimism and pro-crypto commentary from Donald Trump. Nevertheless, macro themes, including trade tensions and recession risks, continue dictating overall market sentiment.

In the near term, the SEC’s posture, Ripple’s legal strategy, legislative developments, and ETF-related news will remain key drivers of XRP’s performance.

Unlock expert XRP insights here before the next move.