XRP Slides Amid Legal Uncertainty and Delayed ETF Momentum

What to Know

• XRP fell 6.54% on August 2, closing at $2.7675, underperforming the broader crypto market.
• Five closed SEC meetings have passed without a vote on dropping the Ripple appeal.
• A pending XRP ETF approval may depend on the SEC appeal resolution.
• The token dropped from a July peak of $3.66 to a low of $2.72 in early August.
• A confirmed appeal withdrawal and ETF approval could trigger a rally past $5.

XRP Under Pressure as Legal Deadlock Clouds Investor Sentiment

The price of XRP faced renewed selling pressure after the SEC remained silent on whether it would formally withdraw its appeal against Ripple. Paired with uncertainty surrounding a potential XRP-based spot ETF, the regulatory limbo has fueled bearish momentum across the memecoin’s market.

On August 2, XRP fell 6.54%, compounding losses from the previous day. The token ended the session at $2.7675, significantly underperforming the broader crypto market’s 1.43% dip, as overall market capitalization dropped to $3.58 trillion.

SEC Meetings Yield No Decision, Stalling Market Confidence

Despite five closed-door meetings held by the SEC since Judge Analisa Torres denied the joint request for an indicative ruling, the agency has yet to vote on withdrawing its appeal. This follows Ripple’s June 27 decision to withdraw its own cross-appeal, implying that both parties were expected to end litigation.

However, the SEC must still formally announce its withdrawal—something that has not happened. The delay has contributed to market instability, sending XRP from its July 18 high of $3.6606 down to a four-week low of $2.7297 by August 3.

Regulatory Uncertainty Puts XRP ETF Prospects at Risk

Hopes for an XRP-based spot ETF are also being impacted by the unresolved legal status of the token. The SEC had contested Judge Torres’ finding that XRP programmatic sales were not securities, a ruling that initially allowed U.S. exchanges to relist XRP without fear of regulatory breach.

If the SEC continues its challenge or fails to vote to end the appeal, exchanges may consider delisting XRP again to avoid compliance risks. That uncertainty casts a long shadow over any upcoming ETF approvals and could hinder future investment access to the asset.

Future Price Action Hinges on SEC and ETF Decisions

XRP’s path forward is now tightly linked to developments within the SEC. Should the agency confirm its appeal withdrawal and greenlight ETF applications, investor optimism could quickly return, potentially sending XRP beyond its prior record.

Some analysts predict a breakout past the $3.6606 high could pave the way to a $5 target. Without such catalysts, however, XRP may remain under pressure or face further corrections.

Technical Picture Shows Mixed Signals for XRP Bulls

From a technical standpoint, XRP remains above both its 50-day and 200-day Exponential Moving Averages, which is generally considered a bullish indicator. However, momentum appears to be weakening.

A clean break above the $3.00 mark could open the door toward $3.20. If that level is reclaimed and sustained, XRP may revisit $3.50 and retest its July peak. Conversely, falling below the intraday low of $2.7297 would expose key support at $2.50.

The current 14-day RSI of 43.77 suggests that XRP is still far from oversold territory, meaning additional downside remains possible without a strong reversal trigger.

Broader Market Risks May Amplify XRP’s Vulnerability

Aside from regulatory and ETF-related news, XRP remains exposed to macroeconomic influences. Concerns over U.S. stagflation, a hawkish Fed policy stance, or global recession risks could further weigh on investor appetite.

Conversely, positive U.S. economic data or increased speculation about future interest rate cuts may offer a tailwind. Legislative clarity and continued institutional adoption across crypto will also play a role in shaping sentiment.

Q&A

Why did XRP decline on August 2?

XRP fell 6.54% due to mounting uncertainty surrounding the SEC’s delayed appeal vote and lack of progress on a spot ETF approval. This legal limbo has triggered investor caution and selling pressure.

What is the SEC’s role in XRP’s recent price action?

The SEC must vote to withdraw its appeal in the Ripple case, which many see as critical for establishing legal clarity. Their ongoing silence has stalled optimism and limited institutional interest.

How is the ETF delay impacting XRP?

Without clarity from the SEC, an XRP spot ETF remains in question. If the legal uncertainty persists, it may discourage approval or delay institutional products linked to XRP.

Can XRP still rally past $5?

If the SEC formally ends its appeal and ETF approval moves forward, market sentiment could flip bullish. A rally past $3.66 toward $5 would become more likely under those conditions.

What are key support and resistance levels for XRP?

On the upside, $3.00 and $3.20 are near-term resistance levels. Support is currently at $2.72, with a critical level at $2.50 if selling accelerates.

Is XRP still in a bullish trend?

Technically, yes — XRP is above both the 50-day and 200-day EMAs. However, momentum is weakening, and RSI levels suggest more downside could occur before a true reversal.

Could XRP be delisted from exchanges again?

If the SEC continues its legal challenge or refuses to withdraw its appeal, some exchanges may choose to delist XRP to reduce legal exposure. This could hinder liquidity and accessibility.