Ripple vs SEC Lawsuit Ends While XRP Struggles at $3.5, But Primed to Reach $5

The long-running Ripple vs. SEC lawsuit has finally concluded, removing a significant overhang for XRP and reigniting investor interest. On August 8, 2025, the SEC officially ended the lawsuit, with Ripple agreeing to pay a $125 million penalty and abiding by an injunction that restricts unregistered institutional sales of XRP. This development marks a pivotal moment for XRP, offering much-needed regulatory clarity after years of uncertainty.

XRP Price Reaction and Technical Outlook

In the immediate aftermath of the announcement, the XRP price surged sharply, reflecting renewed optimism among traders and investors. This bullish momentum propelled XRP beyond key moving averages, signalling a potential trend reversal from the prolonged bearish pressure.

• Resistance Zone Test—Price is approaching the $3.36–$3.63 resistance zone, which has previously triggered pullbacks. A confirmed breakout above $3.63 could open the path toward the next target near $4.20.

• Support Level Strength—The $3.15 area (middle Bollinger Band) is acting as immediate support. If price fails to hold here, the downside could extend toward $2.78, aligning with the lower Bollinger Band.

• Bollinger Band Squeeze and Expansion—Bands are widening after a recent squeeze, suggesting volatility is returning. This could signal a strong move in either direction, with a bullish bias if the price sustains above $3.15.

• MACD Turning Bullish—The MACD line is crossing above the signal line near zero, hinting at a potential bullish reversal. Sustained momentum could push the price toward $4.20–$4.50 in the medium term.

• Volume Confirmation Needed – Recent upward moves show moderate volume compared to earlier surges. A breakout above $3.63 with a volume spike would strengthen the case for a rally toward $4.20 and possibly $5.00.

Fundamental Drivers and Medium-Term Prospects

With legal uncertainties behind it, Ripple is expected to intensify efforts on expanding its On-Demand Liquidity (ODL) service and forging new partnerships, especially in emerging markets like Asia and the Middle East. These developments could drive real-world use cases for XRP, bolstering demand over the medium term.

Furthermore, ongoing collaborations in central bank digital currency (CBDC) initiatives position Ripple as a key player in the evolving cross-border payments landscape. With this, the XRP price is expected to be the best performer and surge high, leaving all the major cryptos behind.