Ripple’s SEC Win Fails to Spark XRP Rally as Whales Take Profits

XRP prices dipped 2% in the 24 hours ending August 12, sliding from $3.19 to $3.14 after peaking at $3.32 earlier in the day.

The pullback follows two days of double-digit gains triggered by Ripple Labs’ landmark legal victory against the U.S. Securities and Exchange Commission (SEC), which ended a nearly five-year battle and removed a major regulatory hurdle for the cryptocurrency.

The drop was fueled by heavy profit-taking, particularly during the 19:00 trading hour, when XRP fell from $3.20 to $3.15 on 73.87 million in volume.

Support at $3.13 held firm after multiple tests, while resistance has solidified near $3.27. Late-session dip buying saw a modest rebound to $3.14, with volume spikes signaling continued interest at lower levels.

Whale Distribution Caps Upside Momentum

Despite the positive legal resolution, XRP’s rally has stalled due to large-scale distribution from whale holders. On-chain data shows major wallets selling into strength, creating sustained downward pressure that retail buying has been unable to overcome.

This profit-taking trend suggests that institutional players had already priced in the lawsuit win and are now rebalancing portfolios.

Analysts caution that if $3.13 fails, XRP could retest $2.00 or even $1.64, the latter representing a potential 45% correction flagged by a recurring bearish divergence pattern similar to the 2018 market peak.

However, clearing $3.55 resistance could reignite bullish momentum toward $4.41 and $5.68, provided ETF approvals and whale accumulation materialize.

XRP ETF Optimism Meets Market Reality

The settlement has fueled speculation about a spot XRP exchange-traded fund (ETF), with some analysts assigning a 95% approval probability by October 2025. Futures-based XRP ETFs have already attracted $1 billion in inflows, highlighting growing institutional interest.

Still, market leaders such as BlackRock warn that ETF success will depend on broader crypto market conditions and macroeconomic trends, not just legal clarity.

Ripple’s ongoing focus on infrastructure, including partnerships in the MENA region and central bank digital currency (CBDC) development, reinforces its long-term value proposition but may not drive immediate price surges.

For now, XRP remains locked in a short-term consolidation phase, with $3.13 and $3.27 defining the near-term range. Traders are watching for either a breakout above resistance to confirm renewed momentum or a breakdown below support that could trigger deeper corrections.