XRP News Today: XRP Falls 2% After SEC Settlement Eases Pressure

XRP, the digital asset issued by Ripple Labs, has retreated 2% from a recent high of $3.32 to $3.14 following a period of rapid price gains fueled by the resolution of a nearly five-year legal dispute with the U.S. Securities and Exchange Commission (SEC). The settlement, which saw Ripple and the SEC jointly dismiss appeals, clarified that XRP sold on public exchanges is not a security, effectively removing a major regulatory overhang and boosting daily trading volumes by 208% to $12.4 billion [1]. However, in the aftermath of the legal clarity, heavy profit-taking and institutional selling have emerged as dominant forces, causing the token to retreat from its post-settlement euphoria [3].

The price action over the 24-hour period ending August 12 revealed a pattern of strong intraday volatility, with XRP hitting a peak of $3.32 at 08:00 before encountering resistance and sliding to $3.15 in the 19:00 hour on a heavy 73.87 million volume print. Despite the pullback, key support levels have held firm, particularly at $3.13, which has withstood multiple tests. Resistance remains solid at $3.27, suggesting a defined near-term trading range [1]. Late-session buyers managed to push the price back above $3.13, signaling some accumulation activity as the token consolidates [1].

While the settlement has unlocked greater institutional participation in XRP markets, the broader crypto landscape remains sensitive to macroeconomic factors such as trade disputes and evolving monetary policy expectations. Institutional investors appear to be recalibrating their positions, rebalancing portfolios in the wake of the legal resolution [3]. The increased open interest and elevated volumes suggest that market participants are still actively engaging with XRP, though the immediate price response reflects a more measured outlook as traders take profits after a sharp rally.

The regulatory outcome has set a precedent that could influence how the SEC approaches the classification of other digital assets. Ripple’s decision to pay a penalty without admitting wrongdoing has been seen as a pragmatic compromise, but the lack of a clear legal definition distinguishing utility tokens from securities continues to create uncertainty [1]. This ambiguity may affect other projects seeking to navigate the evolving regulatory landscape without facing prolonged legal battles.

In the short term, traders are closely monitoring key price levels and volume patterns to gauge the sustainability of XRP’s rally. A breakout above $3.27 could reignite upward momentum, while the stability of the $3.13 support level will be critical in determining whether the current pullback is a temporary correction or a sign of broader market fatigue. Continued institutional inflows will also be a key factor in assessing the token’s ability to maintain its elevated trading activity [3].

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Sources:

[1] Ripple-SEC Rally Cools as XRP Drops 2% on Heavy Profit-Taking

(CoinDesk) (https://www.coindesk.com/markets/2025/08/12/ripple-sec-rally-cools-as-xrp-drops-2-on-heavy-profit-taking)

[3] Crypto Short News – Latest Real-Time Updates

(Coinpedia) (https://coinpedia.org/crypto-live-news/)