XRP Rallies 27% as Ripple and SEC Move Toward $50M Settlement Agreement

Key Takeaways

• XRP has extended its 30-day rally to 27%, spiking to nearly $2.40 after Ripple and the SEC settled.
• Ripple agreed to pay $50 million, a significant reduction from the initial $2 billion fine sought by the SEC.
• On-chain metrics like the MVRV ratio 2.22 suggest XRP is not yet overvalued, implying a potential to $3.
• If momentum holds, XRP could hit $3.40, but failure to maintain the rally might lead to a drop below $2.28

XRP price has extended its 30-day rally to 27% after Ripple and the U.S. Securities and Exchange Commission (SEC) decided to put their differences aside and end their long-standing dispute.

Before Thursday’s court filing, the altcoin had been rising, in tune with the broader market recovery, and was trading at $2.12. But a bullish engulfing candle appeared after news broke out of the settlement.

This sent XRP’s price close to $2.40. Here, CCN breaks down the settlement’s key terms, examines XRP’s technical and on-chain metrics, and outlines what could lie ahead for the cryptocurrency’s price.

Ripple Ends Dispute, XRP Soars In Response

In March 2024, the SEC sought a judge’s approval to accept $2 billion from Ripple for breaching the U.S. securities laws. However, this was rejected and reduced to $125 million.

However, yesterday, May 8, both parties agreed that Ripple should pay $50 million. Following this development, XRP’s price action reacted positively.

According to the 4-hour chart, the token printed seven consecutive green candlesticks, ensuring that it did not drop back into the descending channel formed before.

The setup also seemed like XRP’s price had previously formed a bull flag. In addition, the Chaikin Money Flow (CMF) reading has soared to 0.21, indicating rising buying pressure around the cryptocurrency.

If this remains the same, the altcoin’s value is likely to trade higher in the coming days.

Not Yet Overvalued

From an on-chain perspective, CCN also observed that despite the recent increase, XRP’s price has yet to hit the market top of this cycle. For instance, Glassnode data shows that the realized price is $1.05.

With the current spot price higher than that, the cryptocurrency could climb higher in the short term. The market Value to Realized Value (MVRV) ratio also seems to agree with this sentiment.

Typically, the MVRV ratio shows the unrealized profits and losses in the market. This metric tells when an asset is undervalued or overvalued.

Historically, XRP hits a local or market top when the MVRV ratio is between 2.59 and 4.26. But as of this writing, the ratio is 2.22, indicating that the price still has room to breeze past $3.

As long as the ratio is below the overvaluation point, XRP might see an extended rally soon.

XRP Price Analysis: New 2025 High Possible

Like the 4-hour chart, analysis of the daily chart also presented a bullish outlook. The chart below shows that XRP’s price was trading in a falling parallel channel before.

But today, the altcoin has broken above the pattern’s upper trendline, and the resistance is at $2.28. This move suggests that XRP has invalidated the bearish bias and wants to trade higher.

Amid the change, the Moving Average Convergence Divergence (MACD) has turned negative, indicating bullish momentum. Likewise, the Relative Strength Index (RSI) has climbed to 62.03, reinforcing the positive thesis around it.

Should this trend remain the same, XRP’s price might breach the resistance at $2.72. If successful, the next move for the cryptocurrency could be a new yearly high of $3.40.

On the other hand, if the broader market decided to book profits off the recent gains before this, XRP might not have an easy path to $3.

Instead, the market value could decline below the $2.28 resistance, probably sliding toward $1.60 near the 0.618 Fibonacci level.