The conclusion of the long-standing Ripple vs. SEC lawsuit has brought a sigh of relief for XRP investors. On August 8, 2025, the SEC finalized the lawsuit, with Ripple agreeing to pay a $125 million penalty and abiding by an injunction that limits unregistered institutional sales of XRP. This resolution marks a significant turning point for XRP, providing much-needed regulatory clarity after years of uncertainty.
XRP Price Reaction and Technical Outlook
Following the announcement, the price of XRP experienced a notable surge, reflecting a renewed sense of optimism among traders and investors. This bullish momentum propelled XRP above key moving averages, indicating a potential reversal of the prolonged bearish trend.
Resistance Zone Test—The price is approaching the $3.36–$3.63 resistance zone, which has historically led to pullbacks. A confirmed breakout above $3.63 could pave the way for the next target around $4.20.
Support Level Strength—The $3.15 area (middle Bollinger Band) is currently serving as immediate support. Failure to hold this level could result in a downside move towards $2.78, aligned with the lower Bollinger Band.
Bollinger Band Squeeze and Expansion—After a recent squeeze, the bands are widening, indicating a return of volatility. This could signal a significant move in either direction, with a bullish bias if the price remains above $3.15.
MACD Turning Bullish—The MACD line crossing above the signal line near zero suggests a potential bullish reversal. Continued momentum could drive the price towards $4.20–$4.50 in the medium term.
Volume Confirmation Needed—While recent upward movements have shown moderate volume compared to previous surges, a breakout above $3.63 with a volume spike would strengthen the case for a rally towards $4.20 and potentially $5.00.
Fundamental Drivers and Medium-Term Prospects
With the legal uncertainties now resolved, Ripple is expected to focus on expanding its On-Demand Liquidity (ODL) service and establishing new partnerships, particularly in emerging markets like Asia and the Middle East. These initiatives are likely to create real-world use cases for XRP, boosting demand over the medium term.
Moreover, ongoing collaborations in central bank digital currency (CBDC) projects position Ripple as a key player in the evolving landscape of cross-border payments. With these developments, XRP is anticipated to outperform other major cryptocurrencies and experience significant price surges in the future.