Why is XRP Price Crashing?

The SEC vs. Ripple lawsuit has a new updated, which could have improved the odds of the US Securities and Exchange Commission’s appeal. A September 6 filing shows that the SEC has agreed to Ripple’s stay request, which has caused investors to speculate on two questions: Will the US Securities and Exchange Commission (SEC) appeal? Will XRP price crash or continue its ascent?

XRP Price Slips Below Key Support as SEC’s Appeal Odds Increase

On the daily chart, XRP price has slipped below the yearly Volume Weighted Average Price (VWAP) of $0.5614. This development could increase the chances of a steep correction as the SEC’s appeal odds spike.

Has SEC’s Appeal Odds Increased After Accepting Ripple’s Stay?

The September 4 filing from Ripple’s legal team showed that the US SEC had agreed to the Stay request on the $125 million fine. In turn, the prosecutor proposed Ripple place $139 million, roughly 111% of the initial judgment amount of $125 million. This amount should be placed in the bank account until a month after the time to appeal expires, or there’s an appeal.

What is a Stay request?

A stay is a legal maneuver that temporarily halts or suspends a court’s judgment or ruling. In this case, Ripple has requested a stay of the monetary portion of the August 7 judgment, which requires them to pay a $125 million fine.

Why did Ripple request a stay & why did the SEC agree?

Ripple’s request could be as simple as to preserve assets. Another reason for this request could be that it would give Ripple time to strengthen its case and leverage over the SEC. On the other hand, the SEC must have agreed to Ripple’s request as it would allow them to preserve capital and improve their argument before filing an appeal. 

Pro-XRP Lawyer Increases SEC Appeal Odds

Regarding the SEC vs. Ripple lawsuit, pro-XRP lawyer Fred Rispoli stated on X that “odds have increased.” He adds that while the stay request will put 111% of the monetary judgment into a trust, it does not “guarantee” an appeal.

Rispoli stated that this agreement to Ripple’s Stay request is “SEC being evasive to Ripple lawyers.” The lawyer, however, mentions that while this move from the prosecutor does not confirm with certainty that the SEC will appeal, it has increased the odds. To be precise, Risipoli says there is a 60% chance that the SEC will appeal.

IMO 60/40 in favor of appeal.

— Fred Rispoli (@freddyriz) September 4, 2024

XRP Price Fumbles Amid SEC Appeal Odds

The daily chart shows that the XRP price flipped the yearly VWAP support at $0.5614 into a resistance level. This level coincided with the daily support level of $0.5560, making this recent breakdown pivotal. 

If this bearish momentum continues, investors can expect a 10% correction to the next key support level of $0.5033, the lower limit of the yearly VWAP.  If buyers fail to defend this level, investors can expect Ripple price to reach the $0.4696 foothold, which has supported the remittance token over the past 500 days. This move would constitute a 15% crash.

A quick flip of the yearly VWAP’s $0.5614 level into a support floor would alleviate the bearish momentum for XRP price. Such a development could see Ripple bulls catalyze a 10% move to VWAP’s upper limit of $0.6196.

Frequently Asked Questions (FAQs)

1. What is the current market outlook for XRP price?

The XRP price has slipped below the yearly Volume Weighted Average Price (VWAP) of $0.5614, increasing the chances of a steep correction. However, a quick flip of the yearly VWAP's $0.5614 level into a support floor could alleviate the bearish momentum and catalyze a 10% move to VWAP's upper limit of $0.6196

2. What is the current status of the SEC vs. Ripple lawsuit?

The US Securities and Exchange Commission (SEC) has agreed to Ripple's stay request, temporarily halting the monetary portion of the August 7 judgment.

3. What are the implications of the SEC's agreement to Ripple's stay request?

The agreement has increased the odds of an SEC appeal, with pro-XRP lawyer Fred Rispoli estimating a 60% chance of an appeal. This development has also led to a potential XRP price crash, with a possible 15% correction to $0.4696.

✓ Share:

• TAGS
• Ripple

• Trending
• Price Analysis

• ‘Huge Breakthrough,’ Peter Brandt Says as Dogecoin Reclaims $0.30 Ahead ETF Launch
• Bitcoin Bull Cycle Could Extend To 2026, Arthur Hayes Predicts
• CZ Urges Banks to Adopt BNB as Analyst Predicts $1,300 Price Target
• Shiba Inu Update: Team Freezes 4.6M BONE Amid New SHIB Upgrades
• Trump-Backed WLFI Token Signals Rebound As Team Announces Buyback Plan

• Pepe Coin Price Prediction as the Token Jumps Nearly 20% – Will Whale Accumulation Take it to $0.00003?
• Pi Coin Price Prediction As Adam & Eve Pattern Signals Breakout Rally To $0.45 Ahead
• HBAR Price Prediction Amid DTCC Listing and Archax Expansion — Is $0.50 Next?
• Ethereum Price Eyes a 40% Surge as Morgan Stanley Shifts Fed Cuts Forecast
• Solana Price Prediction: Ford’s $1.65B Treasury Bet Sets Sights on $320

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Akash Girimath

Senior Cryptocurrency Analyst & Market Strategist Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts. A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise. Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.