Ripple SEC Case Update: XRP Price Drop 6% Despite Motion Filing

Ripple and SEC File Joint Motion in Long-Running Legal Battle, But XRP Price Faces Pressure

The prolonged legal standoff between Ripple Labs and the United States Securities and Exchange Commission (SEC) entered a new phase this week. On June 12, both parties submitted a joint motion to the U.S. Court of Appeals, just ahead of a critical June 16 deadline. The motion requests the court to modify its final judgment, specifically seeking to dissolve the ban on institutional sales of XRP and to reduce Ripple’s $125 million penalty.

The filing, made public by U.S. attorney James Filan, represents a rare collaborative step by the two sides in this high-stakes case. The goal is clear: to help bring the drawn-out dispute closer to resolution without further protracted appeals. Legal analysts view this as a significant shift, indicating a shared interest in avoiding additional courtroom battles that could stretch on for years.

Source: X

Joint Motion Signals Possible Turning Point in Ripple SEC Case

The joint request focuses on easing restrictions that have weighed on Ripple’s operations and investor confidence. By proposing the removal of the injunction on institutional XRP sales and seeking a reduction in financial penalties, both Ripple and the SEC are indicating a willingness to move toward closure. This strategy could prevent the case from escalating to higher courts and eliminate the uncertainties of further appeals.

Source: X

However, legal experts warn against assuming that a final settlement is imminent. Prominent pro-crypto lawyer Bill Morgan highlighted that while the joint motion is promising, it does not mark the conclusion of the legal proceedings. Morgan cautioned that both parties are still preparing for the possibility of future appeals, should this motion fail to produce a comprehensive resolution. He also urged investors to remain cautious and not to be swayed by misleading reports suggesting that the lawsuit has already been fully resolved.

XRP Price Reacts to Legal Uncertainty and Global Tensions

Despite what some had hoped would be a positive legal development, the XRP price did not see an uptick. Instead, it experienced a notable drop of around 6% within a single trading day, slipping from recent highs to hover near $2.11. This decline has sparked fresh concern among investors and prompted a flurry of questions: why is XRP falling despite the progress in court?

The answer lies in a mix of factors beyond just the courtroom.

First, the delay in reaching a final verdict continues to frustrate investors. The SEC originally charged Ripple in December 2020, accusing it of raising $1.3 billion through unregistered XRP sales. Nearly four years later, a clear resolution remains elusive, and the constant cycle of hearings, motions, and appeals has eroded market confidence. Each new court update that stops short of final closure adds to the anxiety gripping the XRP community.

Second, heightened geopolitical tensions are adding to the sense of unease across financial markets. Reports of Israeli military strikes that killed Iran’s top military commander Mohammad Hossein Bagheri and other key figures have deepened fears of a wider conflict in the Middle East. The possibility of further escalation between Israel and Iran has prompted investors worldwide to move their capital out of riskier assets, including cryptocurrencies. The XRP sell-off reflects this broader risk-off sentiment.

Finally, delays in regulatory decisions regarding cryptocurrency exchange-traded funds (ETFs) are dampening optimism for altcoins like XRP. The SEC’s postponement of a ruling on Franklin Templeton’s proposed XRP ETF, now pushed to June 17, underscores the regulatory uncertainty facing crypto markets. Many traders had hoped that ETF approvals would serve as a catalyst for renewed investment in digital assets. Instead, the delays signal that regulatory acceptance of such products may still be a long way off.

Technical Outlook: What’s Next for XRP Price?

Technical indicators suggest that XRP is under short-term pressure. On the daily chart, the cryptocurrency is trading near $2.12, with the relative strength index (RSI) hovering around 40.87—an area approaching oversold conditions. The moving average convergence divergence (MACD) indicator also points to ongoing bearish momentum, with no immediate signs of reversal.

If XRP fails to hold the $2.10 support level, analysts warn that it could slide further toward the $1.85 to $1.90 zone. Persistent legal uncertainty combined with geopolitical instability could continue to weigh on the price in the coming weeks.

However, a more bullish scenario is also possible. Should investor sentiment shift—perhaps driven by positive legal developments or a calming of global tensions—XRP could rebound. A break above resistance at $2.30 might pave the way for a move toward $2.70 or even the psychologically important $3.00 level.

Source: TradingView

Looking ahead to the next key court date on July 16, market watchers believe that XRP’s price could experience heightened volatility. If the case edges closer to a settlement or if Ripple secures significant relief, the token could rally. On the other hand, further delays or negative legal outcomes could send the price tumbling toward lower support zones.

Ripple SEC Case: Broader Implications for Crypto Markets

The Ripple-SEC lawsuit has come to symbolize the wider struggle between regulators and the rapidly evolving cryptocurrency industry. The outcome of the case could have far-reaching consequences, shaping how other digital assets are classified and regulated in the United States.

A resolution that lifts restrictions on XRP and reduces Ripple’s penalty could provide a template for other crypto firms facing regulatory scrutiny. Conversely, a prolonged battle or a harsh final judgment could embolden regulators to pursue similar cases against other projects.

Beyond the legal sphere, the case underscores the growing interconnection between global events, regulatory developments, and crypto prices. From geopolitical tensions in the Middle East to SEC decisions on ETFs, multiple forces are now influencing digital asset markets. For investors, this means navigating a complex landscape where price movements are increasingly driven by factors beyond blockchain fundamentals.

Conclusion

The joint motion filed by Ripple and the SEC offers a glimmer of hope for a resolution in one of the most closely watched crypto lawsuits. Yet, as recent price action demonstrates, legal developments alone are not enough to steady XRP in the face of broader market and geopolitical risks. Traders and investors will need to stay vigilant as the July 16 court date approaches, monitoring not only the courtroom drama but also global events and regulatory signals that could shape the future of XRP and the wider crypto space.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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