XRP, one of the most closely watched cryptocurrencies, is facing renewed pressure after a significant legal development dealt a fresh blow to Ripple’s ongoing battle with the U.S. Securities and Exchange Commission (SEC). The coin has dropped sharply in the last 24 hours, underperforming both Bitcoin and the broader crypto market.

As of Friday, June 27, XRP was trading at approximately $2.09, marking a decline of 4.64% on the day. This downturn comes as Bitcoin climbed to $107,003—up 1.5% during the same time—leaving XRP trailing significantly behind in relative performance.

Legal Setback Triggers Investor Concern

The drop in XRP’s value is widely being linked to the latest ruling in the Ripple vs. SEC case. In a recent decision, Judge Analisa Torres of the U.S. District Court denied a joint motion by Ripple and the SEC that sought an indicative ruling. Such a ruling could have provided clarity on whether the court might be inclined to amend or reconsider parts of the final judgment, particularly around institutional sales of XRP.

Judge Torres’s response made it clear that the arguments presented were not convincing enough to prompt the court to revise its position. The ruling leaves Ripple and XRP without the legal momentum some investors were hoping for, especially as the regulatory climate for digital assets remains uncertain in the U.S.

This unexpected denial has caused a stir among market participants, many of whom were betting on a more favorable legal trajectory to support XRP’s growth. The setback not only impacted XRP’s price but also reignited questions about the token’s long-term regulatory status and investment appeal.

XRP Threatens $2 Support Level

The latest price movement has brought XRP dangerously close to a key psychological and technical level at $2. A sustained drop below this support could open the door to further losses, particularly if broader market sentiment turns risk-averse or if there are no positive updates from Ripple’s legal team in the coming days.

XRP had recently peaked at around $2.19 but failed to maintain that level amid the legal uncertainty. If the sell pressure continues, traders may begin eyeing lower support zones around $1.90 or even $1.75, which could serve as short-term consolidation zones in the event of an extended correction.

Active Address Surge Signals Underlying Interest

Despite the legal turbulence and bearish price action, some indicators suggest there’s still strong user engagement with the XRP ecosystem. According to recent blockchain data, active XRP addresses have surged 442% in just 48 hours, with the total now sitting at approximately 181,000. This sharp uptick may reflect speculative interest from traders or increased usage from existing holders.

High activity in wallets can sometimes be a precursor to price stabilization or even a rebound, especially if it reflects a broader market trend or news cycle shift. However, in this case, the activity may also be tied to panic selling or defensive repositioning, making it difficult to draw a firm conclusion about sentiment.

Volume Jumps but Outlook Stays Clouded

XRP’s trading volume has jumped by over 26% to $3.29 billion, reflecting high market participation amid the price drop. While increased volume often indicates strong interest, it can also highlight volatility and uncertainty.

With no immediate signs of clarity from the Ripple legal team, investor caution may persist. Analysts are watching closely for any official updates from Ripple, particularly any statements addressing the court’s decision or outlining the company’s next legal steps.

Bitcoin’s Strength Highlights XRP’s Weakness

While XRP stumbled, Bitcoin’s 1.5% daily gain reinforced its role as a market leader. The divergence between the two assets is notable, as XRP’s underperformance signals asset-specific concerns rather than a market-wide downturn.

Bitcoin’s rise also outpaced the broader crypto market average gain of 0.9%, further emphasizing XRP’s relative weakness. This performance gap could affect trading strategies in the short term, as investors reassess their allocations in response to shifting legal and technical dynamics.

Can Ripple Rebuild Confidence?

XRP’s future now hinges heavily on how Ripple manages the legal narrative from this point forward. Market participants will be looking for reassurances or a roadmap that shows how the company plans to address the court’s ruling and move toward regulatory clarity.

While the price drop is concerning, XRP has shown resilience in past legal and regulatory challenges. If Ripple can demonstrate control of the situation and outline its next steps with confidence, some of the current market anxiety may subside.

Until then, XRP remains in a vulnerable position, both technically and sentimentally. The $2 level will be a critical zone to watch. If the support holds and positive developments follow, XRP may stabilize. If not, deeper losses could be on the horizon.