XRP Price Drops 7% as Ripple-SEC Legal Pause Sparks Investor Uncertainty

XRP has plunged 7.29% in the past 24 hours, marking the steepest decline among the top 10 cryptocurrencies, according to CoinMarketCap. The sharp drop comes amid broader market volatility, but XRP's losses stand out as fears mount around Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

The decline coincides with a surprising legal update: Ripple and the SEC have jointly agreed to pause their court appeal, as revealed by former federal prosecutor James Filan. While this may suggest behind-the-scenes settlement talks, the move has triggered market panic rather than confidence.

Despite a surge in XRP’s trading volume by 33.96%, reaching $4.74 billion, the price fall indicates intensified sell-offs. Large transactions—including a $438 million XRP transfer by Ripple—have further fueled speculation about insider activity and market manipulation.

Investors are wary that the legal pause could delay regulatory clarity for XRP. The years-long lawsuit, launched in late 2020, has significantly influenced XRP’s market position and is widely seen as a landmark case for crypto regulation in the U.S.

Although some analysts are optimistic that a negotiated settlement may be underway, the lack of transparency is fueling uncertainty. Retail investors, in particular, are reacting cautiously, leading to increased volatility in XRP markets.

With the recent delay of the highly anticipated spot XRP ETF from Franklin Templeton and lingering legal overhang, confidence in XRP's near-term potential appears to be eroding. For now, the Ripple-SEC saga continues to weigh heavily on market sentiment, keeping XRP holders on edge.