XRP, the cryptocurrency affiliated with blockchain firm Ripple, has shed more than 6% in the last 24 hours, making it one of the worst performers in the top 10.

Price Moves and Bullish Divergence

Data from the 100 eyes Crypto Scanner indicates the XRP/USDT pair has formed a bullish divergence on an hourly chart. This pattern often emerges when the Relative Strength Index (RSI) ticks up despite a falling price, hinting that bearish momentum may be weakening. Still, analysts caution that this technical signal should be viewed in tandem with other indicators.

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Major cryptocurrencies across the board also saw losses on thin post-Christmas trading. Cardano (ADA) is down 5.9%, Dogecoin (DOGE) lost 5.7%, and Bitcoin (BTC)—which neared the $100,000 mark during the holiday—fell by 3% amid year-end portfolio rebalancing.

Ripple’s Legal Saga Enters a Critical Phase

Meanwhile, the protracted legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) persists, with key deadlines in early 2025. The U.S. Court of Appeals for the Second Circuit has set January 15, 2025, for the SEC to submit its opening brief in the appeal. This follows Judge Analisa Torres’s 2023 ruling that XRP in itself is not a security, a significant win for Ripple.

Ripple’s Chief Legal Officer, Stuart Alderoty, asserts that the current appeal does not challenge the fundamental question of whether XRP should be classified as a security. The company maintains that XRP should enjoy the same legal clarity as Bitcoin, with Alderoty calling for the incoming administration to “cleanse the lingering stain of Hinman” from the SEC—a reference to the controversial 2018 speech by former SEC Director William Hinman.

Potential Policy Shifts Under a New Administration

Adding another wrinkle is the recent Trump election victory, which some market participants believe may hasten a favorable resolution. Paul Atkins, slated to assume SEC Chair responsibilities, is known for a pro-crypto stance. Legal experts suggest that Atkins’s leadership might lead to either a settlement or a withdrawal of the SEC’s case against Ripple, sparking optimism among XRP holders.

Prominent attorneys, including Jeremy Hogan and Fred Rispoli, anticipate a settlement rather than a full dismissal. Nonetheless, the expectation of a more crypto-friendly SEC has stirred hope across the digital asset market, with traders eyeing a possible XRP price rally if the lawsuit concludes.

Market Outlook for 2025

Despite the ongoing uncertainty, Ripple has kept pushing forward. Earlier this year, the company introduced RLUSD, its stablecoin, briefly boosting XRP’s market sentiment. However, that uptick proved short-lived against broader market headwinds and concerns over the legal battle’s final outcome.

XRP currently trades around $2.15, hovering over 30% below its all-time high reached in early 2018. The token’s fate in the new year may hinge on a favorable legal resolution and the market’s overall risk appetite. Many analysts believe that if the SEC’s enforcement approach shifts—or if the agency drops its appeal—XRP could experience renewed momentum, potentially topping $3 in the months ahead.

For now, XRP investors enter 2025 with cautious optimism. While the crypto market remains volatile, signs of weakening bearish momentum and the possibility of regulatory clarity could set the stage for a more robust year ahead.