TLDR:
- XRP price reclaimed the $2.00 level, surging 20% over the past week
- A US appellate court temporarily paused the SEC-Ripple case for 60 days amid settlement negotiations
- Ripple is seeking an “indicative ruling” to resume private XRP token sales, which is crucial for IPO prospects
- XRP has achieved six consecutive months of positive returns against Ethereum (ETH)
- Analysts see potential for a 27% breakout to $2.78 based on an inverse head-and-shoulders pattern
XRP has stabilized above the $2.00 mark while the legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) enters what could be its final phase. After a decade-long dispute, both parties have moved toward resolution with the US Court of Appeals granting a 60-day pause in proceedings amid ongoing settlement negotiations.
The court approved a joint SEC-Ripple motion to hold the appeal in abeyance on Wednesday. No further briefs are expected, but the SEC must submit a status report by June 15.
This development marks a turning point in the case that has weighed on XRP’s price for years. It confirms both parties have agreed in principle, pending the Commission’s final approval.
Ripple CEO Brad Garlinghouse has confirmed reaching an agreement with SEC staff, though it still requires approval from the agency’s commissioners.
Settlement Terms and Future Plans
According to reports, Ripple Labs has agreed to settle the SEC lawsuit and pay $50 million of a previously imposed $125 million fine. This represents a reduction in penalties that were set by US District Judge Analisa Torres in August.
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed that the SEC would keep $50 million of the penalty, which is currently held in an interest-earning escrow account.
Beyond the settlement, Ripple is seeking an “indicative ruling” from Judge Torres. Crypto lawyer James Farrell explains this ruling would modify her earlier judgment in a way that clears Ripple’s path for private XRP sales.
This modified ruling is critical for Ripple’s business prospects. Without it, Ripple’s chances of pursuing an Initial Public Offering (IPO) in the next few years would be severely limited.
While a settlement would bring legal closure, this specific ruling would unlock new business opportunities for Ripple, especially if it plans to list shares on US markets.
Technical Analysis and Price Outlook
XRP has shown price strength amid the legal developments, gaining 20% over the past week and reclaiming the $2.00 level.
Technical analysts point to an inverse head-and-shoulders pattern on the four-hour chart that suggests a potential 27% breakout to $2.78 if resistance at $2.20 (the pattern neckline) is broken.
XRP faces immediate hurdles at the 50-day and 100-day Exponential Moving Averages (EMAs), holding at $2.07 and $2.09 respectively.
Bulls must maintain momentum to validate the inverse head and shoulders breakout. Otherwise, they risk being overshadowed by potential sell pressure indicated by a downward-sloping Relative Strength Index (RSI) at 46.37.
If bulls fail to maintain the $2.00 support level, XRP could test lower supports at $1.96 and $1.75.
XRP’s Performance Against Ethereum
XRP is on track to score six consecutive months of positive returns against Ethereum (ETH) for the first time in history.
The token gained 160% against ETH in November, and this trend has continued throughout early 2025. In March, XRP/ETH was up by nearly 20%, and in April has added another 14% so far.
This performance represents a sharp turnaround compared to the previous year. From November 2023 to May 2024, XRP recorded seven consecutive months of negative performance against Ethereum.
Despite market uncertainty due to extended tariffs and trade wars launched by US President Donald Trump, including a 245% tariff on China, XRP has maintained key support levels.
For the token to reach higher targets, traders will need to see XRP break above several key resistance levels and confirm the bullish pattern that has formed on the charts.
