Why Is XRP Crashing Despite SEC Shifts and the Potential US XRP Reserve?

Tuesday, 25/02/2025 | 13:58 GMT by Tareq Sikder
  • XRP falls 21.7% in 30 days despite several crypto-friendly developments, including the potential US XRP Reserve.
  • The SEC drops its Coinbase lawsuit and clears Robinhood Crypto, signaling a softer crypto stance.
Ripple 1 880x400

US regulators are showing signs of softening their stance on cryptocurrency, as the Securities and Exchange Commission (SEC) dismissed its lawsuit against Coinbase. The lawsuit, accusing the exchange of operating as an unregistered securities broker, was a central issue in the ongoing regulatory conflict between crypto companies and US authorities.

Coinbase's victory comes after a period of intense scrutiny under the previous administration. At the same time, XRP has seen a sharp decline of nearly 21.7% in the last 30 days, despite growing speculation about its future, according to Coingape.

US Shifts Crypto Stance Amid Regulatory Changes

In another development, Robinhood Crypto emerged from a lengthy SEC investigation without facing enforcement action, signaling a shift in the regulatory treatment of digital assets.

Source: CoinGape
Source: CoinGape

While there has been increasing discussion about a potential US XRP Reserve and comments from US President Donald Trump on Truth Social, the appointment of pro-crypto leaders like Howard Lutnick to key positions and the establishment of a crypto task force under the SEC suggest an evolving stance toward cryptocurrency.

XRPUSD Breaks Support, Selling Pressure Rises

The XRPUSD H1 chart indicates a prolonged bearish trend. The 2.75000 level has been acting as resistance. Along the way, the price made several significant breakouts, with the breakout at 2.50000 being particularly important. This level has also acted as resistance on intraday charts, reinforcing the bearish outlook on shorter timeframes.

A bearish trendline is visible on the H1 chart, further supporting the downward momentum. These resistance levels have intensified intraday selling pressure among traders.

Source: TradingView
Source: TradingView

Meanwhile, DeepSeek AI, a predictive analytics platform, has released projections for XRP in 2025. Using machine learning, sentiment analysis, and economic data, it analyzed Ripple’s legal status, adoption of its On-Demand Liquidity (ODL) platform, and market trends.

The model estimates XRP could trade between $3.50 and $5.00 by late 2025, with legal outcomes, institutional adoption, and broader market conditions shaping its trajectory.

Ripple Expands CBDC, DeFi, and Payments Partnerships Amid Investor Interest

Ripple has recently been involved in several key developments. The Digital Euro Association (DEA) partnered with Ripple to collaborate on central bank digital currencies (CBDCs). Based in Frankfurt, the DEA focuses on research, education, and policy discussions around digital currencies.

Investor activity has also increased, with Ripple whales acquiring 520 million XRP during a price dip. Meanwhile, the SEC reassigned Jorge Tenreiro, who was involved in Ripple’s case, raising speculation about the agency’s future crypto litigation strategy.

Ripple has expanded its RLUSD stablecoin’s reach by partnering with Revolut and Zero Hash, positioning it as a competitor to USDT and USDC. In decentralized finance, Ripple collaborated with Chainlink to integrate RLUSD into Ethereum-based applications.

The company also contributed $100,000 in XRP to California wildfire relief efforts, supporting organizations like World Central Kitchen and GiveDirectly. Additionally, Ripple partnered with Portuguese currency exchange provider Unicâmbio to enable instant international payments between Portugal and Brazil using digital assets.

US regulators are showing signs of softening their stance on cryptocurrency, as the Securities and Exchange Commission (SEC) dismissed its lawsuit against Coinbase. The lawsuit, accusing the exchange of operating as an unregistered securities broker, was a central issue in the ongoing regulatory conflict between crypto companies and US authorities.

Coinbase's victory comes after a period of intense scrutiny under the previous administration. At the same time, XRP has seen a sharp decline of nearly 21.7% in the last 30 days, despite growing speculation about its future, according to Coingape.

US Shifts Crypto Stance Amid Regulatory Changes

In another development, Robinhood Crypto emerged from a lengthy SEC investigation without facing enforcement action, signaling a shift in the regulatory treatment of digital assets.

Source: CoinGape
Source: CoinGape

While there has been increasing discussion about a potential US XRP Reserve and comments from US President Donald Trump on Truth Social, the appointment of pro-crypto leaders like Howard Lutnick to key positions and the establishment of a crypto task force under the SEC suggest an evolving stance toward cryptocurrency.

XRPUSD Breaks Support, Selling Pressure Rises

The XRPUSD H1 chart indicates a prolonged bearish trend. The 2.75000 level has been acting as resistance. Along the way, the price made several significant breakouts, with the breakout at 2.50000 being particularly important. This level has also acted as resistance on intraday charts, reinforcing the bearish outlook on shorter timeframes.

A bearish trendline is visible on the H1 chart, further supporting the downward momentum. These resistance levels have intensified intraday selling pressure among traders.

Source: TradingView
Source: TradingView

Meanwhile, DeepSeek AI, a predictive analytics platform, has released projections for XRP in 2025. Using machine learning, sentiment analysis, and economic data, it analyzed Ripple’s legal status, adoption of its On-Demand Liquidity (ODL) platform, and market trends.

The model estimates XRP could trade between $3.50 and $5.00 by late 2025, with legal outcomes, institutional adoption, and broader market conditions shaping its trajectory.

Ripple Expands CBDC, DeFi, and Payments Partnerships Amid Investor Interest

Ripple has recently been involved in several key developments. The Digital Euro Association (DEA) partnered with Ripple to collaborate on central bank digital currencies (CBDCs). Based in Frankfurt, the DEA focuses on research, education, and policy discussions around digital currencies.

Investor activity has also increased, with Ripple whales acquiring 520 million XRP during a price dip. Meanwhile, the SEC reassigned Jorge Tenreiro, who was involved in Ripple’s case, raising speculation about the agency’s future crypto litigation strategy.

Ripple has expanded its RLUSD stablecoin’s reach by partnering with Revolut and Zero Hash, positioning it as a competitor to USDT and USDC. In decentralized finance, Ripple collaborated with Chainlink to integrate RLUSD into Ethereum-based applications.

The company also contributed $100,000 in XRP to California wildfire relief efforts, supporting organizations like World Central Kitchen and GiveDirectly. Additionally, Ripple partnered with Portuguese currency exchange provider Unicâmbio to enable instant international payments between Portugal and Brazil using digital assets.

About the Author: Tareq Sikder
Tareq Sikder
  • 1990 Articles
  • 33 Followers
About the Author: Tareq Sikder
A Forex technical analyst and writer who has been engaged in financial writing for 12 years.
  • 1990 Articles
  • 33 Followers

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