Ripple’s forefront crypto project, XRP, is significantly down today, trading in the red zone amid positive legal development. While a major update in the Ripple vs. SEC court battle hit the news today, investors would have expected a positive move, but were instead met with a slide below the $2.2 level.
Earlier today, renowned Fox Business journalist, Eleanor Terrett broke the news on X, disclosing that Ripple and the SEC have both filed a joint motion to the Southern District of New York (SDNY), requesting that the court lift the injunction previously placed on Ripple, and also to release the $125 million held in escrow.
36crypto reported that the filing also included a proposal that Ripple pay only $50 million in civil penalty to the regulatory body, and take back the remaining $75 million. While the financial agreement still awaits approval from Judge Analisa Torres, it has been interpreted as a partial win for both parties.
Also Read: New Joint Request in Ripple vs. SEC Case Signals Potential End to Battle
Recall that Judge Torres had previously denied a similar request, citing a lack of clarity and procedural violation. However, this time, both parties have stated that removing the injunction and reducing the monetary penalty are both important steps to reaching their settlement agreement.
XRP Nosedives Amid Positive News
XRP has long been influenced by the outcomes of the legal proceedings. Historically, the coin tends to exhibit positive movement on good news, and nosedives amid negative updates. While the new joint request has not yet been approved, it still demonstrates a positive development that could potentially influence XRP’s price movement.
However, XRP has not shown any positive reaction. In fact, in the last 24 hours, the trending token has plunged by more than 5%. At the time of writing, XRP was trading at $2.15, representing a 4.0% decline. Its trading volume, however, recorded a notable spike of 41%, signaling increasing selling activity among investors.
The notable price fall has prompted repeated questions from the XRP community members, questioning why their favorite token is taking a hit today.
Why is XRP Down Today?
Examining the broader crypto market, it is important to note that the decline is not particular to XRP; the global crypto market has taken a significant hit due to a mix of macroeconomic and geopolitical tensions.
Bitcoin (BTC), the flagship cryptocurrency, declined by 2.76% to trade at $104k over the last day. Ethereum (ETH) saw an 8.62% drop to $2,520 during the same time. Other top cryptocurrencies like Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) all saw drops of 9.10%, 8.10%, and 7.38%, respectively.
In the geopolitical front, tensions in the Middle East escalated earlier today after Israel launched an airstrike on Iran. This development shook the crypto and other financial markets as investors started moving toward safer assets like gold and other precious metals.
In the U.S., Treasury Secretary Janet Yellen recently sounded the alarm on President Donald Trump’s tariffs, warning that they could push U.S. inflation above 3%. If this happens, the Federal Reserve might be moved to keep interest rates higher, which is not good for speculative assets like cryptocurrencies.
The recent decline in the price of XRP has raised questions among investors. As the end of the court saga continues to unfold, investors are closely watching to see how it will potentially impact the coin’s trajectory.
Also Read: Crypto Bloodbath: Bitcoin, Ethereum, and XRP Tumble as Altcoins Explode
