XRP Surges as Ripple and SEC End Legal Battle with Joint Appeal Dismissal

• XRP shows a healthy retracement to the 38.2% Fibonacci retracement level to recoup its exhausted bullish momentum.
• The U.S. SEC and Ripple Labs finally ended its 5-year-long lawsuit after filling a joint dismissal of appeal, dated August 7th, 2025
• The declining trend in XRP’s open interest and an anticipated dive of the funding rate into the negative region indicate a weakening bullish momentum.

XRP, the native token of the XRP Ledger, witnessed a sharp 9.68% surge during Thursday’s U.S. market hours to trade at $3.277. The bullish momentum followed the broader market uptick after Donald Trump signed executive orders to allow crypto in 401(k)s and stop banking discrimination against digital assets. However, the coin price gained additional momentum as a five-year-long legal battle between the U.S. Securities and Exchange Commission and Ripple Labs have officially come to a close. Is XRP price ready for a $4 breakout?

SEC and Ripple End Legal Battle with Joint Dismissal of Appeals

Since last weekend, the cryptocurrency market has successfully pushed back against the dominant bearish momentum, with most major assets, including XRP, witnessing renewed recovery. The bullish upswing has bolstered the XRP price from $2.728 to the current trading price of $3.32, projecting a 22% growth.

A substantial portion of this recovery is recorded today as the price bounced 11% and teases an upside breakout from the $3.3 horizontal resistance. Subsequently, the asset’s market cap has bounced to $197.26 billion, while the 24-hour trading volume is up 53% to reach $7.3 billion.

The buying pressure can be attributed to a new court filing dated August 7, showing that the U.S. SEC and Ripple Labs have filed a joint dismissal of appeal, effectively ending a five-year-long legal battle. With this move, all pending appeals have been withdrawn, and one of the most closely watched crypto lawsuits in U.S. history is legally over.

With the case closed, XRP is potentially positioned for clearer institutional adoption in the U.S. market. Ripple may also resume or expand its U.S.-based operations without the overhead of regulatory scrutiny. Meanwhile, the SEC could recalibrate its approach to crypto enforcement, particularly under Donald Trump’s pro-crypto stance.

These developments could bolster the native cryptocurrency XRP to regain bullish momentum and drive a high rally.

XRP Price Challenges Key Resistance For Continued Recovery

The daily chart analysis of XRP price shows its recent correction trend bounced from the 50-day exponential moving average (EMA) and the 38.2% FIB level. Historically, this level has acted as a suitable pullback support for buyers to recuperate their exhausted bullish momentum. 

A potential bullish crossover between the MACD and signal line would project the rising bullish momentum and a change in the short-term price trend. 

With today’s price surge, the coin price teases a bullish breakout from a notable lower-high formation in XRP’s 4-hour chart. A potential breakout with the 4H candle closing will signal a change in the bullish shift in market sentiment and push the price to another 7.95% surge to challenge the last swing high of $3.75.

On the contrary, if the sellers continue to defend the $3.33 barrier, the buyers could drive the price lower with a fresh lower high formation in the 4-hour chart. A series of such lower-high formations is often spotted in an established downtrend, as market participants follow a sell-the-bounce sentiment.

If materialized, the potential downturn could seek suitable pullback support at $3.11, $2.90, and $2.64.

Also Read: China to Allow Launch of Its First Crypto Stablecoin amid Crypto Ban Rumors