- Ripple’s SEC case is officially settled, confirming XRP isn’t a security, but price slipped back near $3 after hitting $3.50.
- Short sellers piled in with $1.16B in positions, far outweighing $519M in longs and adding bearish pressure.
- XRP must hold above $3.10 to target $3.50–$4.00, or risk dropping to $2.88 and $2.70 support levels.
Ripple’s long war with the SEC is finally over. Appeals dismissed, settlement paid, and the ruling stands — XRP is not a security in secondary trades. It should’ve been the start of a fresh leg up, and for a brief moment it looked that way. XRP spiked to $3.50, its highest level since 2021, riding both Fed rate-cut optimism and the legal victory. But momentum fizzled fast. By Sunday, the price slipped back to $3.02, missing its $3.84 target and inviting heavy short interest into the market.
Bears Take the Wheel After Missed Target
Coinglass data shows shorts now dominate XRP’s derivatives markets, with $1.16 billion in short positions compared to just $519 million in longs. That imbalance is no small thing. It signals profit-taking from bulls who rode the settlement rally, while bears look to exploit the pullback. This sudden bearish skew helps explain why XRP lagged behind Bitcoin and Ethereum, both of which surged to fresh highs in August. Instead of riding the same wave, XRP is stuck consolidating under the weight of leveraged shorts.
Technical Picture: Tension Around $3
At press time, XRP is grinding around $3.01, caught in a tight squeeze between converging moving averages. The 5-day SMA sits at $2.99, the 13-day at $3.05, forming a resistance pocket that price has failed to break. MACD is still negative, showing weak momentum for buyers. To shift sentiment, bulls need to reclaim $3.10 with conviction, which could open the door back to $3.50 and then the $3.84 level rejected last week. A breakout past $3.84 might even tempt a push toward $4 if institutional interest follows through.
Downside Risks Still Loom
The bearish scenario is just as clear. If XRP loses its grip on $3, support lies at $2.88. Break that, and the next cushion is $2.70 — the same level that sparked a strong rebound earlier this month. With shorts crowding in, volatility will likely swing both ways, but until buyers force a decisive move, XRP looks trapped in range-bound action. For now, Ripple’s legal clarity is a huge win, but in markets, sentiment and positioning still rule the day.
