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While most investors remain focused on Bitcoin and Ethereum, Ripple’s XRP is quietly setting up for its next potential breakout. With the U.S. Securities and Exchange Commission (SEC) postponing its decision on an XRP spot ETF until later this year and legal uncertainty finally clearing, XRP is now flashing a timely technical buy signal that has traders watching closely.
SEC Case Ends After 5 Years: A Turning Point for Ripple
One of the biggest catalysts shaping XRP’s outlook is the end of Ripple Labs’ five-year legal battle with the SEC. In August, the regulator officially dropped its appeal, bringing the lawsuit to a close. Ripple agreed to pay a $125 million fine, but importantly, U.S. courts ruled that XRP sales to retail investors are not securities, removing a major overhang that weighed on investor sentiment.
With the cloud of legal uncertainty lifted, Ripple Labs has accelerated partnerships and product launches. This, combined with renewed institutional interest, has bolstered the long-term bullish case for XRP.
XRP Ledger Upgrade: Strengthening the Ecosystem
Ripple also rolled out XRP Ledger 2.5.0, an upgrade designed to strengthen its institutional use cases and improve competitiveness against other blockchains. Key enhancements include batch transactions, upgraded escrow functions, and support for stablecoins, making XRP Ledger more attractive for real-world financial applications.
ETF Decision Delayed Until October
The SEC has pushed back its decision on XRP spot ETF applications submitted by Bitwise, CoinShares, and others, citing the need for additional review time. The final ruling is now expected in October.
An approval could mark a game-changer for XRP, opening the door to greater U.S. institutional inflows. But until then, the uncertainty remains a double-edged sword, fueling both speculation and caution among retail investors.
Macro Headwinds and Short-Term Pressures
Not all recent XRP news has been bullish. Stronger-than-expected U.S. inflation data and weak labor market figures have reduced hopes for a Federal Reserve rate cut in September. Risk assets, including crypto, sold off as traders adjusted expectations.
Still, despite short-term macro pressures, XRP has shown resilience in holding key support levels.
Technical Analysis: XRP Flashes a Buy Signal
Crypto analyst Ali Martinez recently highlighted a potential reversal pattern forming on the XRP chart. He noted that XRP printed a “Signal 1” around $3.40 earlier this cycle, followed by a “Signal 9” near $2.85, historically a setup that precedes explosive upside moves.
At press time, XRP trades around $2.94, up 2% in the past 24 hours, with a trading range of $2.83 to $2.99 and daily volume of $6.83 billion.
$XRP looks ready to bounce! After perfectly timing the top, the signal now says BUY. pic.twitter.com/NBbQuXd7RG
— Ali (@ali_charts) August 20, 2025
Price Outlook: Next Stop $4?
If the buy signal holds, XRP could be gearing up for a strong bullish reversal. The immediate resistance lies between $3.00 and $3.10. A successful breakout could clear the path toward the $4 resistance zone, representing nearly 36% upside from current levels.
However, XRP must defend the $2.85 support to maintain bullish momentum. A breakdown below that level could invalidate the reversal setup. For now, traders are watching whether institutional “smart money” flows in, potentially igniting a rally that retail investors have been waiting for.
