Ripple Labs' SEC Settlement Boosts XRP Trading Volume by 300%

XRP, the cryptocurrency associated with Ripple Labs, experienced a significant volume spike of over $3 billion in the past 24 hours, despite its price remaining subdued just above $2.10. This elevated trading volume suggests that there may be substantial activity behind the scenes, potentially indicating that large investors, or "whales," are accumulating the cryptocurrency.

XRP has been in a near-term downtrend since its early 2025 highs near $3.50, finding resistance at its 50-day moving average (50DMA) over the weekend. However, the cryptocurrency enjoyed a strong bounce from its 200-day moving average (200DMA) last week and is up over 30% from its monthly lows. This resilience suggests that the bulls still have control of the market, and the elevated trading volumes further support the idea that whales could be accumulating XRP.

One of the key developments that could be influencing this activity is the recent news that Ripple Labs has reached a dismissal agreement with the SEC. Brad Garlinghouse, the CEO of Ripple Labs, confirmed this in an interview on Fox Business. The SEC fined Ripple Labs back in 2020, but a series of legal setbacks and the arrival of the pro-crypto Trump administration have seen the SEC back off from lawsuits against major crypto market players, including Ripple Labs.

The key headline here is that Ripple Labs might settle the lawsuit by handing over $50 million in XRP tokens to the US government. This would establish XRP as one of the top assets in the US government’s recently established crypto stockpile, which is separate from its strategic Bitcoin reserve. The fact that the US government would be officially stockpiling XRP would be a major bullish signal for the crypto.

For now, XRP is likely to remain at the whims of the broader market. Developments relating to tariff wars, the state of the US economy, and the Fed are key to watch. If XRP is able to break above its 50DMA and recent downtrend, a 60% jump back to 2025 highs could be on the cards. However, market conditions may remain choppy, and investors should be cautious.