XRP Falls 4% Post-SEC Settlement as Traders Lock In Profits
XRP fell about 4% on the day Ripple settled its long-running legal battle with the SEC, even as the agreement confirmed that XRP is not a security. Traders employed a classic “buy the rumor, sell the news” strategy, locking in gains after a pre-settlement price spike.
XRP’s mixed reaction was highlighted when Ripple CTO David Schwartz marked the settlement on X with a Monty Python reference, reflecting mixed market sentiment. SEC Chair Paul Atkins and Commissioner Hester Peirce signalled a move toward regulatory clarity for digital assets, a development welcomed by Ripple’s legal team. However, many investors remain cautious, preferring to await detailed policy proposals. Until formal guidelines are released, XRP and the wider altcoin market will be subject to ongoing volatility driven by profit-taking and shifting sentiment.
Bearish
Although the SEC settlement removes a major legal overhang by confirming that XRP is not a security, the immediate price drop reflects profit-taking and “sell-the-news” behavior. In the short term, XRP is likely to remain volatile as traders lock in gains and await detailed regulatory guidelines. Over the longer term, clearer SEC rules could provide a more stable foundation for XRP, potentially supporting a bullish outlook once policy clarity is achieved. However, until then, short-term sentiment swings are expected to dominate price action.