XRP Price Dips as Institutions Lock in Gains After SEC Win

The focus keyword XRP headlines the evolving story of Ripple’s recent legal resolution, which sent waves through the market — yet also illustrated the volatile nature of crypto trading. Despite achieving a long-awaited settlement with the SEC, XRP saw a 2% decrease in its value, dipping to $3.14 after peaking at $3.32.

The session began with XRP opening at $3.19 and quickly surging to an early high of $3.32, sparked by optimism surrounding the regulatory clarity from Ripple’s agreement with the Securities and Exchange Commission. However, the uptrend didn’t last. The crypto community witnessed a classic “buy the rumor, sell the news” reaction as large-scale profit-taking ensued later in the day.

At 7 PM, a coordinated sell-off saw nearly 73.87 million XRP tokens offloaded, dragging the price down to $3.15. This chart movement coincided with a massive swell in trading activity, with daily volumes skyrocketing 208% to reach $12.4 billion. That number signals intensified activity from institutional traders, many of whom may have been waiting for legal risk to dissipate before making sizable moves.

Even as the price retraced, traders identified meaningful support at the $3.13 level. Buyers came in consistently every time XRP touched that threshold, indicating a floor supported by sentiment and market mechanics. Price resistance appeared at $3.27, suggesting any near-term rallies will need to break through that level for momentum to continue upward.

Ripple’s Legal Victory Unlocks Institutional Entry

The recent legal resolution officially brought Ripple’s nearly five-year dispute with the SEC to a halt. The joint dismissal of all appeals signifies the end of one of crypto’s most closely-watched regulatory sagas. This outcome removes lingering uncertainties that had previously hindered institutional participation, especially from banks and large investment firms cautious about compliance risks.

Following the settlement, open interest in XRP-related financial instruments grew as institutional and professional traders entered the space. These market participants had largely remained sidelined due to fears over regulatory backlash. Now, with the scrutiny lifted, their involvement is increasingly visible in trading volumes and price behavior.

This influx of institutions adds liquidity and complexity to XRP’s market dynamics. While it validates the token’s legitimacy in financial systems, it also introduces more strategic behavior, including sudden profit-taking, that retail investors need to be ready for.

Macroeconomic Tensions Still Loom

Despite the positive legal outcome, XRP isn’t immune to the broader economic climate. Geopolitical instability, monetary policy changes, and global financial uncertainty continue to suppress larger market rallies across the crypto sector. These variables exert downward pressure, even on tokens buoyed by significant news developments.

Given this landscape, XRP’s recent price behavior falls in line with well-known crypto market patterns. Rallies triggered by bullish news are often short-lived due to strategic exits, especially by those who accumulated early. The recent sell wave that began at 7 PM bore signs of institutional coordination — a reminder that large players often move the needle in high-volume altcoins like XRP.

Looking forward, XRP sits within a defined range between $3.13 on the downside and $3.27 on the resistance front. A breakout above $3.27 would likely signal an attempt to recapture bullish momentum, while any breach below $3.13 could prompt broader market corrections depending on macroeconomic context.

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

Nonetheless, the post-settlement trading surge shows that XRP’s future remains embedded in institutional interest — a dramatic shift from the days of caution that defined its legal limbo since 2020.