US Court Pauses SEC Appeal as Settlement Talks Progress

TLDR

• A US appellate court temporarily paused the SEC-Ripple case for 60 days, with the SEC expected to file a status report by June 15
• XRP is showing strength at the $2.00 support level with technical patterns suggesting a potential 27% breakout to $2.78
• XRP is on track to score six consecutive months of positive returns against Ethereum for the first time in history
• Ripple is seeking an “indicative ruling” from Judge Torres to allow resumption of private XRP sales, critical for its potential IPO
• Settlement talks continue between Ripple and SEC, with reports indicating Ripple may pay $50 million of a previously imposed $125 million fine

The ongoing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) took a major turn this week as a US appellate court granted a 60-day pause in proceedings. This development has helped XRP maintain support above the crucial $2.00 level while technical indicators suggest a potential breakout.

The US Court of Appeals for the Second Circuit approved a joint motion on Wednesday to hold the appeal against Ripple in abeyance. This temporary pause comes as both parties engage in settlement negotiations.

The SEC must submit a status report by June 15, marking a key milestone in potentially concluding the four-year legal dispute. No further briefs are expected during this period.

Settlement Terms Taking Shape

According to previous reports, Ripple Labs agreed to settle the SEC lawsuit and pay $50 million of a previously imposed $125 million fine. The remainder is currently held in an interest-earning escrow account.

Stuart Alderoty, Ripple’s Chief Legal Officer, confirmed the settlement details in a social media post. Meanwhile, Ripple CEO Brad Garlinghouse has stated that an agreement has been reached with SEC staff, though it still requires approval from the agency’s commissioners.

The case has drawn attention from the entire crypto community as its outcome could set major regulatory precedents for the industry.

Technical Analysis Points to Potential Gains

XRP’s price action has formed an inverse head-and-shoulders pattern on the four-hour chart. This technical formation suggests a possible 27% breakout to $2.78 if XRP can overcome resistance at the $2.20 pattern neckline.

The token faces immediate hurdles at the 50-day and 100-day Exponential Moving Averages, positioned at $2.07 and $2.09 respectively. Breaking above these levels could pave the way toward the 200-day EMA at $2.16 and the critical neckline resistance at $2.20.

However, bearish signals are also present. The Relative Strength Index (RSI) shows a downward slope at 46.37, and the Moving Average Convergence Divergence (MACD) indicator displays a sell signal with red histograms.

If support at $2.00 fails, XRP could test lower levels at $1.96 and potentially $1.75.

Historic Performance Against Ethereum

XRP is achieving a remarkable milestone in its performance against Ethereum. The token is on track to record six consecutive months of positive returns against ETH – the first such streak in its history.

The impressive run began in November with a 160% gain against ETH, and the momentum has continued throughout early 2025. March saw almost 20% growth in the XRP/ETH pair, with April adding another 14% so far.

This represents a dramatic reversal from the previous year when XRP recorded seven consecutive months of negative performance against Ethereum from November 2023 to May 2024.

The strong performance comes amid positive developments in the SEC case and growing buzz around the possibility of an XRP ETF.

Crypto analysts believe a spot-based XRP ETF could become reality in the near future, following the successful launches of Bitcoin and Ethereum ETFs.

Beyond the settlement, Ripple is pursuing an “indicative ruling” from Judge Analisa Torres that would allow it to resume private XRP sales – a critical factor for its potential Initial Public Offering (IPO).

According to crypto lawyer James Farrell, without this specific ruling, Ripple’s chances of going public in the coming years would be severely limited.

1/20 What’s next in the Ripple/SEC saga (TLDR; you are probably measuring this in months and not days).

— James Farrell (@Farrell1969) April 16, 2025

While a settlement would resolve the legal conflict, the ruling is what would unlock new business opportunities for Ripple, particularly if it aims to list shares on US markets.

The SEC’s procedures could potentially slow down the resolution process. Even with SEC support, the process in district court could take six months or longer.

If Judge Torres agrees to modify her previous decision, the appeal could conclude shortly after. However, if she refuses, the case might return to appellate court, potentially delaying the final outcome until early 2027.

Despite these procedural uncertainties, traders remain optimistic about XRP’s price potential once the case concludes. Some analysts suggest that $2 may now serve as a price floor for a possible parabolic rally.

XRP has already seen a strong 20% surge over the past week, reclaiming the $2 level. Analyst Maelius believes this could be the early phase of a much larger upward movement.

The analyst noted that XRP’s market structure on higher time frames appears bullish, particularly after a recent rebound from the 50-week EMA – a level that has historically signaled major uptrends.

Some technical analysts suggest XRP may be entering the final leg of an Elliott Wave cycle, known as Wave 5, with a 35% probability of climbing as high as $10 following the lawsuit’s resolution.

As the legal proceedings wind down, the crypto community watches closely for both the settlement terms and the crucial ruling that could shape Ripple’s future business operations.