XRP News Today: XRP Price Volatile Amid SEC Legal Battle, AI Models Predict 2025 Range

XRP, the cryptocurrency associated with Ripple, has been trading above the $2 support zone amidst ongoing legal proceedings between Ripple and the Securities and Exchange Commission (SEC). The recent developments in the case have led to predictions from two artificial intelligence models regarding the price of XRP by the end of 2025.

On May 17, a federal judge rejected a motion from the SEC to reduce a $75 million penalty, citing procedural issues rather than addressing the case’s merits. This decision, while not worsening Ripple’s legal standing, prolongs the uncertainty surrounding XRP. The unresolved legal status may weigh on investor sentiment, as a judge’s approval of the settlement would have finally closed the chapter on this legal battle.

In light of this, two AI models, OpenAI’s ChatGPT and xAI’s Grok, were consulted to assess how XRP might perform by the end of 2025 amidst regulatory uncertainty. ChatGPT presented a scenario-based forecast shaped by how the SEC case unfolds. In a bullish outcome, where Ripple secures a favorable settlement and the broader cryptocurrency market rallies, XRP could rise to between $3.50 and $5.50. However, if the legal process drags on without resolution, XRP will likely trade between $2 and $3. An unfavorable outcome, such as an adverse ruling or broader market downturn, could push prices down to the $1 and $2 range. With XRP currently trading at around $2.40, ChatGPT suggested the price reflects a mix of optimism for legal closure and caution due to delays.

Grok, on the other hand, took a more optimistic stance, predicting that XRP could reach between $3.50 and $4.50 by the end of 2025. The lower end of its forecast accounts for extended legal delays or a broader market pullback, while the $4.50 projection assumes partial legal progress, supported by potential approvals of spot XRP exchange-traded funds (ETFs) and Ripple’s expanding role in global payments.

At the time of reporting, XRP was trading at $2.39, up 1.5% in the past 24 hours and 0.26% over the past week. The asset’s 50-day simple moving average (SMA) is $2.21, slightly below the current price, indicating short-term stability. The 200-day SMA, at $1.91, reflects a longer-term upward trend.

On May 15, 2025, Judge Analisa Torres rejected a joint motion filed by Ripple and the SEC, which sought to lift the injunction against institutional sales of XRP. This decision sent shockwaves through the market, causing XRP's price to plummet to $2.43, erasing recent gains. The ruling introduced fresh regulatory risks and uncertainty, as the legal battle between Ripple and the SEC continues to drag on. The next court deadline is not until mid-June, leaving XRP in a state of limbo, with its price likely to remain under pressure and locked between fragile support and sliding sentiment.

The market reaction to the judge's ruling was swift and negative. XRP's price tumbled to weekly lows around $2.30 on Friday, and continued to trade as low as $2.31 on Saturday. The decision to uphold the $125 million settlement fine has introduced new regulatory risks, as appeals could run until the end of the year. Without a resolution, Ripple remains trapped in a gray zone, and investors are beginning to price in the likelihood that this legal stalemate could last well into 2025.

The bearish sentiment was further exacerbated by a decline in open interest and trader sentiment. Coinglass' derivatives trading data showed that XRP open interest was down 6.47% to $4.71 billion, reflecting a rapid exit from leveraged long positions. Trading volumes also collapsed by 23.35%, a clear sign that many traders are scaling down their exposure to XRP amid the regulatory uncertainty. Despite this broader retreat, some large traders appear to be positioning for a reversal, with top accounts maintaining a bullish long/short ratio. However, this optimism contrasts with mounting long liquidations, which totaled $11.67 million over the last 24 hours, while short liquidations remained negligible.

The ongoing legal battle between Ripple and the SEC has cast a shadow over XRP's regulatory future. The ETF narrative that once boosted optimism now looks increasingly remote as legal clarity dims. Traders may continue to de-risk until either the SEC signals an official appeal or Ripple produces a more compelling motion. Until then, XRP price is likely to consolidate within a narrow channel between $2 and $3, swinging with broader market narratives.

Despite the bearish sentiment, some analysts remain optimistic about XRP's long-term prospects. Grok, an AI-driven analytics platform, predicted that XRP could reach between $3.50 and $4.50 by the end of 2025. However, this prediction is contingent on a resolution to the ongoing SEC case and a return of regulatory clarity. Until then, XRP's price will likely remain volatile and subject to the whims of the legal battle between Ripple and the SEC.