XRP Plummets Below $2.25—SEC’s Radio Silence Spooks Crypto Market

Another day, another regulatory gray zone haunting crypto traders.

XRP's price tanks as SEC stays mum

The sixth-largest cryptocurrency bled out 12% overnight, crashing through the $2.25 support level that algorithmic traders had marked as "safe." Market makers are scrambling—liquidity pools show bid orders getting pulled faster than a DeFi rug pull.

Meanwhile in Washington...

SEC chair Gary Gensler's trademark smirk says it all. The agency hasn't issued guidance since their 2020 lawsuit against Ripple, leaving XRP holders twisting in the wind. "It's like watching a slow-motion train wreck," quips one OTC desk manager. "Except the train is made of lawyers billing by the hour."

Technical outlook: Brace for impact

With the 50-day MA curling downward and RSI dipping into oversold territory, chartists predict more pain ahead. The $2.00 psychological level looms large—break that, and we could see a cascade of stop-loss triggers.

Silver lining? At least Bitcoin maximalists finally get to say "I told you so" about altcoins. Again.

SEC Silence Pushes XRP Down as Appeal Decision Delayed

Investors expected the Securities and Exchange Commission (SEC) to officially drop its appeal against Ripple after the firm withdrew its own cross-appeal on June 27. But the SEC has yet to make any public statement, leaving XRP investors in legal limbo.

As a result, XRP slid to $2.2219 on July 4, a 1.65% decline, reversing gains from the previous day. The token remains far from its 2025 high of $3.3999 and the 2018 all-time high of $3.5505.

Ripple CEO Brad Garlinghouse addressed the issue, saying:

“We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value.”

The SEC’s next closed meeting is scheduled for July 10, which may finally bring clarity on whether the regulator will abandon its appeal.

Former SEC Official Criticizes Agency’s Crypto Stance

The delay has triggered sharp criticism from former SEC enforcement official John Reed Stark, who questioned how the agency can protect investors in crypto when it claims digital assets aren’t securities.

Stark said:

“The SEC cannot protect coin investors or any digital asset holders because it has declared these assets are not securities.”

His comments mark a clear contrast from previous SEC leadership under Gary Gensler, suggesting a more hands-off approach to crypto regulation under current SEC Chair Paul Atkins.

XRP Price Outlook: Key Levels to Watch

XRP’s next MOVE depends on whether the SEC confirms its withdrawal from the case and whether there is progress on a U.S. XRP spot ETF. A break above $2.25 could target $2.3275, and beyond that, the $2.65 and $3 levels come into focus.

However, if the price slips further and breaks below the 50-day EMA, XRP may fall toward the 200-day EMA and test support NEAR $1.93.

Currently, technical indicators remain cautiously bullish, but only a clear legal signal can drive stronger upside.

Bitcoin Dips as Dormant Wallets Move $8.6 Billion

While XRP is battling regulatory uncertainty, Bitcoin (BTC) saw its own moment of tension. On July 4, blockchain analytics firm Arkham detected that eight Satoshi-era BTC wallets, inactive for over 14 years, suddenly moved a total of $8.6 billion in Bitcoin to new addresses.

This sudden movement caused a 1.42% dip in Bitcoin’s price, bringing it down to $108,097.

Crypto analyst Edo Farina commented:

“Markets are in panic mode because Satoshi-Era wallets reactivated after 14 years.”

Although the BTC hasn’t been sold yet, the reactivation has raised concerns about a potential increase in circulating supply if those coins hit exchanges.

Bitcoin ETF Inflows Still Support Bullish Outlook

Despite the whale activity, bitcoin remains supported by strong ETF inflows. According to Farside Investors, U.S. spot Bitcoin ETFs saw $769.5 million in net inflows last week.

Breakdown of major inflows:

• BlackRock’s IBIT: $336.8 million

• Fidelity’s FBTC: $248.4 million

• ARK 21Shares (ARKB): $160 million

• Grayscale’s GBTC: Lost $84.9 million

ETF Store President Nate Geraci said:

“IBIT has now generated more fee revenue than BlackRock’s largest ETF, the iShares S&P 500 ETF. It’s simply a machine.”

Since starting in January 2024, IBIT has brought in $52.6 billion in net inflows, helping to balance out selling pressure and increasing institutional trust in Bitcoin.

BTC Price Outlook: $100K or $112K Next?

The next direction for Bitcoin depends on upcoming events:

• Bearish risks include renewed trade war tensions, anti-crypto legislation, and hawkish Fed signals.

• Bullish triggers include cooling inflation, pro-crypto laws, and continued ETF inflows.

If bearish trends dominate, BTC could fall toward the $100,000 level. But if bullish momentum returns, BTC may push past its all-time high of $111,917.

Conclusion: XRP and BTC Face Uncertainty, But ETF Momentum Offers Hope

Both XRP and Bitcoin face important tests in the coming days. XRP’s fate hangs on the SEC’s next move, while Bitcoin must navigate the impact of dormant whale wallets. However, ETF inflows remain a bullish driver, especially for BTC, which continues to attract big institutional money.

If XRP gets regulatory clarity and ETF news turns favorable, it could regain strength. Until then, volatility remains high, and investors should keep a close watch on July 10’s SEC meeting and macro market signals.