XRP price dips 3% to $2.41 as a US District Judge Analisa Torres overrule Ripple $125 settlement fine against Ripple. With derivatives traders taking on a cautious stance, can XRP defend the $2 support in the days ahead?
XRP Finds Support at $2.40 US Judge Upholds $125M Fine on Ripple
Ripple (XRP) slipped by 3% on Friday, trading as low as $2.37 following a negative legal development that reignited concerns over regulatory uncertainty.
The current bearish blow on XRP price comes after U.S. District Judge Analisa Torres rejected a proposed $50 million settlement between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), affirming a prior $125 million penalty and an injunction on future securities violations.
Despite Ripple’s intention to appeal court’s decision to effectively raise the settlement fine from $50 million to $125 million, XRP traders showed negative reaction over the last 24 hours.
Coingecko data shows that Ripple price is trading at $2.35, down 3% since the Court ruling hit the newsreels.
Meanwhile, Bitcoin and Ethereum price posted mild gains on Friday, reclaiming key levels at $104,400 and $2,590 respectively at the time of writing.
XRP Derivatives Market Reaction: $160M in Open Interest Pulled Amid Legal Uncertainty
This renewed regulatory uncertainty surrounding the Ripple vs. SEC lawsuit has spread beyond the spot markets. XRP derivatives market trends observed on Friday shows that speculative traders flipped into a more cautious stance following the ruling.
As seen in the Coinglass’ chart below, XRP treaders have responded with a 3.29% decline in Open Interest, representing over $160 million in capital withdrawal within 24 hours. This signals traders actively de-risking and exiting leveraged XRP positions, to mitigate risk amid regulatory uncertain.
Data from Binance and OKX shows a declining long-to-short ratio among top traders, with Binance’s long/short (positions) ratio at 1.98 and a broader account ratio nearing 3.26—reflecting thinning bullish conviction.
Over $13.5 million in XRP derivatives positions were liquidated in the past 24 hours, 92% of which were long positions.
Options market sentiment corroborated the negative reaction among XRP traders on Friday. While options volume spiked 7.9% to $2.03K, open interest in options plunged over 76%, down to just $254.27K, revealing sharp outflows among large investors who often dominate options trading markets.
Will XRP Price Recover in May 2025?
With the case now likely to extend further into litigation, volatility expectations may continue to limit inflows from new entrants. In the near-term XRP price is now likely to enter a prolonged consolidation phase below $3.
More so, the 5.3% lag in XRP/BTC trend on Friday further emphasises risks that XRP could fall behind rival top-ranked assets, even if the crypto market rally advances further in 2025.
Frequently Asked Questions (FAQs)
The decline followed a federal judge’s rejection of a proposed $50M settlement between Ripple and the SEC, maintaining legal uncertainty.
A $160M pullback in derivatives Open Interest reflects trader exits and de-risking amid renewed legal ambiguity around Ripple’s future.
Recovery depends on regulatory resolution or technical rebound. If bulls reclaim $2.60, the path toward $2.80 could reopen.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/xrp-price-forecast-today-traders-withdraw-160m-as-us-judge-rejects-ripples-50m-sec-settlement/
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