XRP Price Reacts As SEC Classifies Most Crypto Assets As “Not a Security”

XRP has been attempting a gradual recovery over recent days, pushing the crypto token above the $1.50 threshold. Tuesday brought a fresh intraday spike that generated renewed optimism across the XRP community. 

However, sustaining this momentum is proving difficult as selling pressure continues to emerge at elevated price levels, capping the altcoin’s upside potential.

The Ripple Win That Paved The Way

The SEC and CFTC’s joint classification of digital assets as “digital commodities” rather than securities was broadly welcomed across the crypto industry. This landmark regulatory development provided immediate clarity that market participants had been awaiting for years. 

The classification carries a direct connection to Ripple’s landmark August 2025 legal victory, when XRP received its “not a security” designation from the courts. The new SEC-CFTC framework effectively codifies that precedent at the regulatory level. This resembled Ripple’s legal win and propelled XRP price to $1.60 during the intraday surge before sellers emerged to trim the advance.

Profits Exist, but So Does Profit-Taking

The MVRV Ratio for XRP is approaching the critical 1.0 threshold, a technically meaningful development for the altcoin’s recovery outlook. When this indicator crosses back above 1.0, it signals that total market capitalization has surpassed realized capitalization. That condition indicates the average XRP holder is moving back into profitable territory.

Historically, MVRV crossing above 1.0 marks the transition from a bearish to a bullish market environment for an asset. This pending crossover represents one of the more encouraging macro signals currently present in XRP’s on-chain data. A confirmed move above that threshold could meaningfully accelerate buying activity and strengthen the recovery narrative.

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Exchange net position change data reveals that XRP holders are still net sellers over the 30-day measurement window. Despite the regulatory tailwind and improving macro indicators, the prevailing sentiment among holders leans toward distribution rather than accumulation. This persistent selling behavior is directly dampening the magnitude of XRP’s price response to positive news.

As profitability increases among holders, this selling tendency may actually intensify before it improves. Investors moving into profit often accelerate exits rather than hold through resistance levels. This dynamic likely explains why the intraday spike to $1.60 faced immediate selling pressure and why sustaining gains above key levels remains challenging for XRP in the current environment.

XRP Price Might See a Drop

XRP surged 4% intraday on Tuesday following the SEC-CFTC announcement before retreating as investors sold into the spike. The altcoin is now trading at $1.52, reflecting the market’s mixed response to the regulatory development. Buyers showed up on the news, but sellers quickly neutralized the momentum.

Continued selling could push XRP below $1.51 and toward the $1.43 support level. That zone is likely to provide meaningful stabilization given its historical significance as a technical floor for the altcoin.

Holder resilience combined with growing profitability could sustain XRP above current levels and drive a push past $1.58. Clearing that barrier would open the path toward $1.70, where the altcoin could establish a new support on its way higher.