XRP Declines 5% Post-Settlement as Rally Stalls

The focus keyword XRP takes center stage following a sharp pullback that disrupted its recent rally sparked by the long-awaited Ripple-SEC settlement. After a multi-year legal standoff reached resolution, XRP initially surged—but has now seen a 5% decline as investors lock in profits amid volatile trading activity.

Stabilizing After a Rollercoaster Ride

In the 24 hours leading to August 9, XRP experienced a notable price contraction, slipping from $3.34 to a low of $3.20 before recovering to around $3.30. This temporary retreat frames a 5.24% price range movement within the day, as considerable sell-side momentum dominated early trading hours. Heavy liquidation was observed between 14:00 and 15:00, where XRP plummeted from $3.36 to $3.20, marking a sell-off volume peak of 209.67 million tokens—the session’s most intense hour of trading.

Fortunately for bulls, the $3.20 level held firm as a critical support zone. Buyers reasserted control and pushed XRP upward to $3.33 by 19:00. Despite the recovery, resistance began to consolidate around the $3.31-$3.33 region, suggesting a short-term cap on further upside until stronger volume arrives.

Ripple-SEC Legal Battle Concludes

XRP’s market dynamics come as the regulatory cloud surrounding Ripple finally dissipates. Ripple Labs and the U.S. Securities and Exchange Commission (SEC) mutually agreed to withdraw their appeals, ending a five-year legal entanglement over XRP’s classification. The dismissal was formally acknowledged by the Second Circuit Appeals Court, with both parties opting to cover their own legal expenses.

Ripple’s Chief Legal Officer, Stuart Alderoty, stated on X, “Following the Commission’s vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals.” This move has brought long-desired clarity to XRP’s status, opening new avenues for institutional participation—and potentially regulatory endorsements.

In-Depth Technical Landscape

Technicians highlight several key support and resistance levels. The $3.20 price floor remains firmly validated by the highest volume print of 209.67 million tokens during the drop. On the upside, resistance zones firmly entrench themselves between $3.31 and $3.33, making this band a battleground for traders in the upcoming sessions.

Momentum watchers also note a developing bull flag pattern forming just above the $3.28 level. If XRP cracks the $3.33 mark with conviction, a sustained upward trend might follow. A brief volume resurgence at 01:52, with trading spiking to 1.86 million tokens, hints at possible quiet accumulation by larger entities preparing for the next leg up.

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

Key Drivers for XRP Investors

• Whether XRP can maintain its pivotal $3.20 support during subsequent retests will be closely monitored. Its integrity could dictate short-term sentiment shifts.
• A decisive breakout above the $3.33 resistance range is crucial for halting profit-taking cycles and reigniting bullish continuation.
• The recently established regulatory clarity following the lawsuit resolution could encourage both retail and institutional buyers to reevaluate their positions.
• Developments such as Japan’s SBI Group’s ETF filing related to crypto markets, and its potential influence on U.S. ETF frameworks, make global spillover effects another essential trading consideration.

Ultimately, XRP remains within a defined trading corridor with a firm base and capped upside. The market now awaits confirmation of trend direction, as regulatory relief and technical signals intersect at a pivotal juncture in the token’s evolution.