XRP Shocks Coinbase After Ripple-SEC Legal Resolution

XRP has once again taken center stage following the conclusion of Ripple’s high-profile legal dispute with the U.S. Securities and Exchange Commission (SEC). In a rapid and unexpected move, over $55.46 million worth of XRP—equivalent to 16,684,298 tokens—was transferred to Coinbase shortly after the final verdict was reached.

This substantial transaction took place mere hours after court filings confirmed that both Ripple and the SEC agreed to dismiss their appeals, effectively finalizing the case. Analysts had been closely watching this moment, given its potential to dramatically shift market sentiment and investor behavior surrounding XRP.

The origin of the XRP transfer involved a wallet address that wasn’t immediately familiar to blockchain trackers. However, it didn’t take long for observers to identify the move as internal to Coinbase, shifting funds from Cold Wallet 396 to one of the company’s more frequently accessed wallets. Despite the mystery at first, this clarification has framed the transaction as a liquidity management step rather than a large-scale sell-off.

According to available on-chain data, Coinbase still holds 29 cold wallets, each loaded with about 16.5 million XRP. This context strongly suggests that the $55 million transfer was not connected to individual selling activity, but instead part of a broader operational adjustment coinciding with the favorable regulatory news.

Coinbase’s strategic fund movement aligns neatly with the finalized ruling from Judge Analisa Torres, originally issued in July 2023. The key takeaway from her verdict was that XRP sales to institutional investors were labeled securities transactions, while retail transactions and trading on exchanges were not. With appeals officially dropped, this hybrid classification will now serve as the definitive legal framework, easing long-standing regulatory uncertainties for Ripple and XRP users alike.

Beyond Coinbase’s internal reshuffling, the timing of this liquidity adjustment is generating serious interest. Transfers to active wallets such as this are frequently precursors to increased exchange activity and market volatility, especially when they happen against a backdrop of major legal or regulatory shifts. Timing, in this case, appears deliberate.

As for XRP’s current standing, the digital asset has already seen a noticeable jump, touching $3.38—its highest price level since late July. This surge followed closely on the heels of the termination of the legal appeals and raises speculation about whether the market might now be poised for an extended rally or simply winding up for profit-taking.

The XRP token’s historical volatility often reflects key developments in Ripple Labs’ legal affairs. Now that a significant legal hurdle has been successfully navigated, traders and institutional players are reevaluating the asset’s short- and long-term prospects through a more optimistic lens. Whether this results in sustained bullish momentum or a cautious pullback remains to be seen, but enthusiasm has clearly returned to the XRP ecosystem.

Related: XRP Price: $12M Max Pain for Bears

While the $55.46 million transfer might have initially stirred fears of a large dump, context reveals a different story—one of strategic positioning rather than panic selling. Coinbase appears to be preparing for forthcoming trading activity, perhaps in anticipation of revived interest in XRP and Ripple’s expanding ecosystem under a now clearer regulatory framework.