XRP News Today: Legal Standoff Caps Gains—Can ETF Hopes Fuel a Breakout?

XRP in Legal Limbo, Capping Upward Momentum

Investor sentiment toward the SEC vs. Ripple case continues to impact XRP demand. On Saturday, June 7, the token rose 0.76%, following Friday’s 3.16% gain, closing at $2.1787. XRP underperformed the broader crypto market. The market climbed 1.38%, lifting the total market cap to $3.25 trillion.

Two court rulings loom, potentially dictating XRP’s price outlook. The SEC must submit an update to the US Court of Appeals on Ripple and the agency’s settlement progress by June 16. In April, the Court of Appeals granted a motion to pause appeal proceedings for 60 days to allow the parties to settle.

However, Judge Analisa Torres rejected a motion for an indicative ruling on lifting the injunction prohibiting XRP sales to institutional investors and lowering the $125 million penalty. Judge Torres cited procedural errors and inadequate arguments that a settlement would be in the best interest of the public and institutional investors.

A favorable settlement could be crucial, as both Ripple and the SEC have agreed to drop their appeals if the courts grant a favorable indicative ruling.

Significantly, if the SEC fails to obtain a settlement indicative ruling by June 16, the agency will need to relay the lack of progress toward a settlement to the Court of Appeals. In this scenario, Ripple may have to file its appeal-related summary brief, progressing the SEC’s appeal against the Programmatic Sales of XRP ruling.

Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

Pro-crypto lawyer Bill Morgan recently remarked on the looming Court of Appeals deadline, stating:

“The count down to the date the SEC must report to the Appeal Court is now 12 days. Something has to happen by then or the Appeal and Cross-appeal continues and a briefing is due from Ripple.”

XRP-Spot ETF Approval Odds Bolster XRP Demand

While legal uncertainties continue impacting price trends, hopes of the SEC approving a US XRP-spot ETF boosted XRP appetite. According to Polymarket, the chances of an XRP-spot ETF approval in 2025 stands at 88%. While down from 98.2% on June 3, the odds have climbed from 68% in April.

Amicus Curiae attorney John E. Deaton remarked on the evolving US crypto regulatory landscape, stating:

“This time 2 years ago (June 2023) the SEC was arguing ALL XRP are securities, even if acquired independent of Ripple, including if purchased off exchanges like Coinbase, Kraken, Gemini, Uphold, etc.”

Deaton responded to a post from MartyP, a crypto commentator and market analyst, who stated:

“SEC approves Nasdaq Crypto US Settlement Price Index (the NCISU) to include SOL, ADA, XLM, and XRP as of June 2. Expect many crypto ETFs to get approved in the coming weeks on this alpha.”

However, the outcome of the Ripple case will likely dictate whether the SEC will approve XRP-spot ETF applications. If the SEC pursues its appeal, the agency may delay or disapprove existing applications.

If the SEC successfully appeals the ruling, US exchanges could de-list XRP to avoid falling under the SEC’s regulatory oversight, a potentially significant blow to XRP’s price outlook.

XRP Price Outlook: Legal Moves and ETF Progress in Focus

XRP’s near-term price trajectory depends on Ripple case-related updates and XRP-spot ETF-related news.

Crucially, a settlement and end to the appeals could drive XRP toward its all-time high of $3.5505.  ETF approval may trigger a rally toward $5. Conversely, if the court rejects a second settlement request, XRP could drop toward $1.50.

XRP Price Action

Daily Chart

Despite two positive sessions, XRP trades below the 50-day Exponential Moving Average (EMA) while holding above the 200-day EMA, signaling bearish near-term sentiment.

A breakout above the 50-day EMA could pave the way for a retest of the May 12 high of $2.6553. A sustained move through $2.6553 could bring $3 and the 2025 high of $3.3999 into play.

On the downside, a drop below the 200-day EMA could expose the $1.9299 support level.

The 14-day Relative Strength Index (RSI) sits at 45.93, suggesting XRP may fall below $2 before entering oversold territory (RSI< 30).

Broader Market Outlook

XRP remains exposed to legal developments and broader external events. The token had previously rallied to $3.3999 in hopes of the SEC dropping its appeal. Pro-crypto commentary from Donald Trump added to the bullish momentum.

However, macro themes, including trade tensions and Fed policy guidance, continue affecting overall market sentiment. In the near term, the SEC’s posture, Ripple’s legal strategy, and ETF-related chatter will remain key XRP drivers.

Unlock expert XRP insights here before the next move.