Why is XRP Dropping? Price in Pressure Amid Legal Setbacks and Delays

XRP is back in the red zone again. Even though the crypto showed a decent weekly gain of 3.64%, the price fell by 0.80% in the last 24 hours. At the time of writing, the coin is trading at $2.07 with a market cap of $121.25 billion and 24-hour trading volume of $2.37 billion.

Source: CoinMarketCap

Why is XRP Dropping? Reasons

Ripple vs SEC Settlement Nearing Conclusion

XRP’s recent dip is mainly due to the prolonged Ripple vs SEC lawsuit. A U.S. appellate court recently granted a 60-day pause for settlement talks. Ripple CEO Brad Garlinghouse said discussions are in their final stage, awaiting an SEC vote. If approved, Ripple could pay a reduced $50 million fine—down from $125 million. While this sounds like progress, investors are still cautious and waiting for confirmation before making any major moves.

XRP ETF Approval Still Pending

Another significant holdup for the altcoin is the pending approval of its ETFs. Top U.S. fund managers have submitted ETFs, and analysts think it has a higher chance of approval than Solana or Cardano. Even with the encouraging prospects, there is no green light yet. The absence of ETF approval still keeps XRP's momentum in check, keeping traders on tenterhooks and awaiting formal decisions from regulators to unleash XRP's complete market potential.

SEC Leadership Change Resulting in Delays

Now everyone's eye is on Paul Atkins, President Trump's nominee to the SEC, approved by the Senate on April 9 but yet to be sworn in. Atkins is a proponent of more transparent crypto regulations, which may expedite ETF approvals and clear up persistent legal hurdles. In the meantime, uncertainty hangs in the air. Coin holders wait anxiously in limbo, trusting that leadership change will inject clarity and momentum into the cryptocurrency community.

Polymarket Data Shows Community Confidence is Falling

According to Polymarket , only 3% of users now believe the altcoin will hit its all-time high in April 2025. This is a big drop from 15% on April 1.

Source: Polymarket

The chances of the altcoin reaching an all-time high by June 30 is just 7%, and only 38% believe it could happen before 2026. Clearly, the crypto community is losing faith.

This decline in optimism is reflecting on trading patterns. Many investors are opting to cut exposure or shift to other coins for the time being.

XRP Price Prediction : Can It Still Reach $5?

According to Ali Matrinez , a Head and Shoulders pattern is being established—normally a signal for bearish strength. The coin already broke through the neckline at $2.25 and retested it. If this pattern fully unfolds, prices will likely drop to $1.50 or even $1.20, with heavy support at $1.80, $1.50, and $1.20. Resistance still holds at $2.25, $2.60, $3.00, and $3.40.

Source: X

For the token to reach $5, it would need to rally above $3.40 and have solid bullish momentum—something that may take place if the SEC lawsuit reaches a favorable outcome or XRP ETF is listed. If that goes well for them, then the coin should hit $5 in late 2025 or early 2026. Should XRP move below $1.50, though, all of that hope might be prolonged into the unknown future.

Conclusion

Though the altcoin is still among the leading crypto tokens by market capitalization, its short-term price action relies significantly on legal and regulatory happenings. Until the SEC case is decided and ETF approvals materialize, users can anticipate sustained price fluctuations.