“My understanding is that the delay in reaching an agreement is due to Ripple’s legal team negotiating more favorable terms regarding the August district court ruling, which imposed a $125M fine on the company and included a permanent injunction preventing the company from selling XRP to institutional investors.”
Speculation about the SEC withdrawing its appeal could intensify in the coming sessions. If the SEC decides to withdraw before Ripple’s appeal-related reply brief filing deadline of April 16, it could mark a significant turning point in the case.
While a potential SEC withdrawal remains one of the most significant catalysts for XRP, investor reaction was muted as they await official confirmation. Meanwhile, lowering the $125 million fine and vacating Judge Torres’ injunction, requiring Ripple to comply with Section 5 of the US Securities Act, would be an added boost.
XRP Price Outlook: Withdrawals, Settlements, and XRP-Spot ETFs
On Monday, March 17, XRP gained 1.96%, partially reversing Sunday’s 4.07% slide to close at $2.3402. XRP tracked the broader crypto market, which rose 1.85%, taking the total market cap to $2.7 trillion.
However, the SEC’s ongoing silence on its appeal strategy kept XRP well below its January peak of $3.3999 and the all-time high of $3.5505 (Binance exchange).
An appeal withdrawal could improve the regulatory environment, potentially increasing the chances of an XRP-spot ETF approval before the October deadline.
Since launching in January 2024, the US BTC-spot ETF market has seen total net inflows of $35.408 billion, supporting BTC’s rise to a record high of $109,312. A similar supply-demand shift for XRP could see the token break past its $3.5505 all-time high and potentially toward $5.
Key factors influencing XRP’s price outlook:
- SEC Appeal Strategy: An appeal withdrawal could drive XRP past $3.55, while prolonged legal uncertainty might push prices below $1.50.
- XRP-Spot ETF Prospects: Approval of an XRP-spot ETF could spark institutional inflows, supporting a move toward $5. However, legal hurdles could delay approval.
- Macro Risks: Rising trade tensions and a hawkish Fed could pressure XRP toward the February low of $1.7938 while easing tensions and a dovish Fed could fuel a recovery toward $2.50.
