Ripple's XRP experienced a sharp 5% price decline on June 26, 2025, following a significant legal development in its ongoing case with the U.S. Securities and Exchange Commission. The downturn came after Judge Analisa Torres rejected a joint request from both parties to modify their settlement terms, creating renewed uncertainty around one of cryptocurrency's most watched legal battles.
This ruling represents another twist in the lengthy legal confrontation between Ripple Labs and the SEC, which has been closely monitored by investors and legal experts alike for its potential implications on how digital assets are regulated in the United States.
Legal Setback Triggers XRP Sell-Off
XRP's price decline made it the worst performer among top-ten cryptocurrencies by market capitalization on June 26. While major digital assets including Bitcoin, Ethereum, and Solana showed minimal losses of less than 1% amid improved geopolitical tensions, XRP bucked the trend with its substantial drop.
The sell-off occurred immediately after Judge Torres denied the proposed settlement modification that would have allowed both parties to dissolve the injunction against Ripple. The judge's ruling emphasized that private agreements between parties cannot override public judicial determinations.
In her statement, Judge Torres referenced the SEC's previous position that Ripple would likely continue violating securities laws, noting: "None of this has changed, and the parties hardly pretend that it has. Nevertheless, they now claim that it is in the public interest to cut the Civil Penalty by sixty percent and vacate the permanent injunction entered less than a year ago."
The rejected proposal would have distributed $50 million of the original $75 million fine to the SEC, with the remaining $25 million returning to Ripple. The court found this arrangement insufficient to meet legal standards for modifying previous judgments.
Two Paths Forward for Ripple Legal Strategy
Following the court's decision, Ripple's Chief Legal Officer Stuart Alderoty outlined the two options now available to the company. In statements made on June 26, Alderoty indicated that Ripple can either withdraw its appeal challenging the finding on historic institutional sales or proceed forward with the appeals process.
Alderoty maintained optimism about XRP's regulatory status despite the setback, stating: "Either way, XRP's legal status as not a security remains unchanged." This binary choice eliminates the collaborative settlement approach both parties had hoped to pursue, potentially extending the legal proceedings.
Financial journalists covering the case provided important context on the ruling's implications. CNBC reporter Eleanor Terrett noted that Judge Torres's message centered on the principle that "private deals don't erase public judgments and her judgment still serves the public interest."
The ruling specifically stated: "The parties do not have the authority to agree not to be bound by a court's final judgment... They have not come close to doing so here." This judicial position reinforces the court's role in protecting public interest beyond private settlements between defendants and regulators.
Technical Analysis Points to Key Support Levels
From a technical perspective, XRP's 5% decline pushed the token below the critical $2.10 resistance level, with immediate support being tested around the $2.00 psychological threshold. The negative momentum generated by the legal setback amplified selling pressure, particularly among institutionald holders sensitive to regulatory developments.
Current technical indicators present a mixed picture:
- XRP is trading between the lower Bollinger band ($2.03) and the middle band ($2.20), suggesting limited downside potential
- The narrowing Bollinger Bands indicate reduced volatility, which could signal consolidation rather than continued selling pressure
- Parabolic SAR dots remain above the candlesticks, confirming downward pressure persists though this bearish signal may be weakening
- The RSI reading of 43.82 shows XRP approaching oversold territory but not yet bottomed out, typically preceding short-term bounces in healthy markets
Market analysts suggest XRP may stabilize around the $2.00 level in the short term, with this psychological price point serving as crucial support. A break below $2.00 could see the token test stronger support around $1.95, which coincides with previous consolidation zones. Conversely, a move back above $2.20 would be required to revive bullish momentum and potentially target the $2.35 resistance level.
The legal uncertainty continues to create headwinds for XRP's price recovery, though technical indicators suggest the current sell-off may be approaching exhaustion. 👉 Explore more trading strategies
Market Context and Investor Sentiment
The rejection of the settlement modification comes amid a generally positive period for cryptocurrency markets, making XRP's underperformance particularly notable. While major cryptocurrencies consolidated gains following reduced geopolitical tensions, XRP moved counter to market trends due to its unique regulatory challenges.
This price action demonstrates the continued sensitivity of digital asset valuations to regulatory developments, particularly for assets like XRP that remain embroiled in significant legal proceedings. The court's decision reinforces that judicial processes operate independently of market sentiment or private negotiations between parties.
For long-term XRP holders, the latest development represents another chapter in a multi-year legal saga that has created persistent uncertainty around the asset's regulatory status. While Ripple has achieved some significant legal victories, including the important determination that XRP is not itself a security, the company continues to face challenges regarding its institutional sales practices.
Frequently Asked Questions
What caused XRP's recent price decline?
XRP dropped 5% on June 26, 2025, after Judge Torres denied a joint request from Ripple and the SEC to modify their settlement terms. The rejection created renewed uncertainty about the case's resolution timeline.
What were the terms of the proposed settlement?
The rejected proposal would have modified the original $75 million fine, with $50 million going to the SEC and $25 million returning to Ripple. It would have also dissolved the injunction against the company.
What happens next in the Ripple-SEC case?
Ripple now faces two options: withdraw its appeal challenging the finding on historic institutional sales or proceed forward with the appeals process. This decision will determine the case's future direction.
Does this ruling change XRP's legal status?
According to Ripple's Chief Legal Officer, XRP's status as not a security remains unchanged despite the court's rejection of the settlement modification. The ruling addresses procedural matters rather than the asset's classification.
What are key support levels for XRP price?
Technical analysis identifies $2.00 as immediate psychological support, with stronger support around $1.95. A recovery would need to reclaim the $2.20 level to signal renewed bullish momentum.
How does this affect long-term XRP investors?
The extended legal proceedings continue to create uncertainty, though the core determination that XRP is not a security remains intact. Long-term investors should monitor both legal developments and technical support levels. 👉 View real-time market analysis
The Ripple-SEC case continues to evolve with significant implications for both the company and the broader cryptocurrency regulatory landscape. While latest developments have created short-term price pressure, the fundamental question of XRP's security status appears settled in favor of the company. Market participants will be closely watching Ripple's decision regarding the appeals process as the next major determinant of case trajectory.