Why is XRP Price Down Even After the Ripple Lawsuit End?
Highlights
- XRP price struggles to stay above $3 despite a favorable outcome in the Ripple lawsuit.
- A broader market correction, ETF delays, and declining investor confidence are fueling the XRP downtrend today.
- Analysts still see bullish potential from upcoming XRP developments, but a short-term correction might persist.
XRP, one of the top cryptocurrencies in the market, is free from the legal uncertainty it has faced for years, but its price still struggles. Notably, the token has once again wobbled below a crucial resistance, touching $2.8 level before a shallow recovery. However, the question is why the price is struggling despite the end of the Ripple lawsuit. Let’s discuss.
Top 3 Reasons Why XRP Price Declining Despite Ripple Lawsuit End
Ripple’s legal issues have been regarded as the biggest hurdle for XRP and its price performance. However, the Ripple vs SEC lawsuit is officially over since the Second Circuit court approved both parties’ joint dismissal request, but XRP’s struggles continue.
Today, August 26, XRP has once again crashed below $3.00 mark, currently trading at $2.90 with $172.93B and $7.02B in trading volume. Notably, this has nothing to do with the lawsuit; instead, it’s the broader market conditions.
1. Crypto Market Correction
The Bitcoin price crash to the $110k mark and below has become the biggest catalyst for the broader market correction. Not only BTC, but XRP, ETH, SOL, DOGE, and the rest of the altcoins are struggling against bears as investor sentiment shifted from greed.
- Source: CoinMarketCap, Crypto Market Heatmap
The massive whale sell-off, cautious trading decisions, and $800M liquidation in 24 hours are keeping the digital assets grounded.
2. XRP ETF Approval Delays
Despite high demand, the SEC has postponed multiple XRP ETF decisions to October, including the WisdomTree XRP ETF. SEC notes that they require additional time to better understand the filings, and other crypto ETFs are also in the same boat.
💥BREAKING:
SEC DELAYS DECISION ON WISDOMTREE SPOT #XRP ETF — NEW DEADLINE OCT 24, 2025. pic.twitter.com/u6S0DyXcxI
— STEPH IS CRYPTO (@Steph_iscrypto) August 26, 2025
However, the uncertainty cooled off the approval speculations, affecting the XRP’s value.
3. Technical breakdown
XRP has officially traded below the $3.00 psychological resistance after the price fell below the $3.05 Fibonacci support. This dip is testing investors’ confidence in the digital asset, challenging its uptrend. However, some analysts suggest it’s still above the $2.75 demand zone, so the bullish structure is intact.
Besides, the key developments, including the XRP credit card launch, IPO launch, and more, are still shaping the token’s future. These updates are considered bullish for the token; however, the price remains much lower than the experts’ prediction at the end of the Ripple lawsuit.
This is likely due to the lack of favorable market conditions and investors’ diverted sentiments, especially as Ethereum is leading the adoption in institutional buyers and ETFs.
Frequently Asked Questions (FAQs)
1. Is the Ripple vs SEC lawsuit officially over?
2. What role do XRP ETFs play in their price movement?
3. When will the XRP price recover?
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