XRP Rebounds Above $2 as Lawsuit Between Ripple and SEC Turns Positive

Ripple (XRP) continues to hold above the $2 mark amid bulls' efforts to consolidate the positive outlook for the new week, with expectations of a strong breakout of up to 27% if a "reverse shoulder-and-shoulder" pattern is established. This rally was further boosted after an appeals court in the US approved a request for a 60-day moratorium on a lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC).

Ripple gets more time as court halts appeals process

The U.S. Second Circuit Court of Appeals recently approved a joint motion from the SEC and Ripple to halt the appeal process for 60 days to allow the two sides to negotiate a settlement. During this time, no further regulatory filings are expected, except for a progress report that the SEC must submit by June 15.

The move marks an important step in the process of closing the years-long lawsuit, which saw that the SEC and Ripple have reached a preliminary consensus, pending final approval from the regulator.

The suspension of appeals provides strategic breathing room for Ripple, while reinforcing expectations of a settlement that is fast approaching — an outcome that could set a landmark legal precedent for the entire crypto industry. It's no surprise that the crypto community is keeping a close eye on developments, especially after a series of reports revealing the possibility of reaching a final agreement.

According to Reuters on March 26, Ripple Labs has agreed to settle a civil lawsuit with the SEC related to the alleged sale of unregistered securities, while also pledging to pay a fine of $50 million out of the total $125 million fine previously proposed by the SEC.

Stuart Alderoty, Ripple's chief legal officer, confirmed the news in a post on X (trước this is Twitter), saying the SEC will receive $50 million of the $125 million fine handed down by U.S. District Judge Analisa Torres in August. This money is currently held in an interest-bearing escrow account.

As Bitcoin Magazine reported on Wednesday, Ripple CEO Brad Garlinghouse also confirmed that the company has reached an agreement with SEC staff, which is currently awaiting formal approval from the agency's commissioners.

XRP has restarted a 27% rally

The XRP price paused its rally after reaching a confluence resistance zone around the $2.25 mark — as mentioned in previous analyses — triggering a quick correction, bringing the price back to test the critical support zone at $2 during Wednesday's session. While the cryptocurrency market has generally remained stable in the face of the escalating wave of trade tensions initiated by the administration of US President Donald Trump — especially the import tariffs of up to 245% on Chinese goods — cautious sentiment still prevails among investors, as macro uncertainties continue to cast a shadow over the prospects for short- and medium-term economic growth. This is also part of the reason why XRP's recovery shows signs of slowing down.

On the four-hour timeframe, a "reverse head and shoulders" pattern is forming that shows strong breakout potential if XRP breaks out of the key resistance zone at $2.20 — corresponding to the neckline of the pattern. If a breakout occurs, the next target is set at $2.78, which is an increase of 27%. This number is determined by measuring the distance from the bottom of the pattern to the neckline, and then adding it to the breakout point.

However, XRP is still facing some significant technical hurdles. Specifically, the 50-period and 100-period EMAs (khung 4 giờ) — currently located at $2.07 and $2.09, respectively — are putting pressure on the bullish effort. Breaking through and turning these moving averages into support zones could contribute to strengthening market confidence, paving the way for the price to move towards the 200-period EMA at $2.16, before challenging the $2.20 resistance zone.

! xrp-tang4-hour XRP/USDT chart | Source: TradingView At the moment, bulls need to hold on to the momentum to confirm the aforementioned technical pattern. If this fails, selling pressure may increase, especially as the RSI is tilted to the negative with a reading of 46.37. Besides, the sell signal from the MACD indicator — underpinned by red histograms — is also giving further impetus to the bears to prevail in the short term.

If XRP fails to hold the $2.00 support mark, the downtrend could be triggered, sending the price back to the nearest support zone at $1.96 — the level that was resistance on April 8 — and beyond to $1.75, which acted as solid support during the April 9 session.

Disclaimer****: The article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions*

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