XRP chart signals 27% jump after SEC-Ripple appeals pause and $50 million settlement 

• A US appellate court temporarily paused the SEC-Ripple case for 60 days, holding the appeal in abeyance.

• The SEC is expected to file a status report by June 15, signaling a potential end to the four-year legal battle.

• XRP holds dearly to support at $2.00, with an inverse head-and-shoulders pattern hinting at a 27% breakout to $2.78.

Ripple (XRP) stabilized above $2.00, exemplifying a similar pattern to the largest cryptocurrency by market capitalization, Bitcoin (BTC), which holds firmly above $84,000 at the time of writing on Thursday. The longstanding case between the Securities and Exchange Commission (SEC) and Ripple Labs is expected to drag on after a United States (US) appellate court granted a joint motion to pause an appeal case against the blockchain company for further settlement negotiations.

The US Court of Appeals for the Second Circuit approved a joint SEC-Ripple motion to hold the appeal against Ripple in abeyance amid ongoing settlement negotiations for 60 days on Wednesday. 

No further briefs are expected; however, the SEC must submit a status report by June 15. This marks a major development in winding up the case, affirming that both parties have agreed in principle ahead of the Commission's final approval.

Ripple has room to breathe, signaling that a final resolution could be on the horizon, which could set a major regulatory precedent. The crypto community will be watching closely, especially with reports of a settlement agreement. 

According to a Reuters article published on March 26, "Ripple Labs agreed to settle a U.S. Securities and Exchange Commission civil lawsuit over the alleged sale of unregistered securities and pay just $50 million of a previously imposed $125 million fine."

Ripple's Chief Legal Officer, Stuart Alderoty, confirmed the settlement in an X post, adding that the SEC would keep $50 million of the $125 million penalty US District Judge Analisa Torres imposed on the company in August. The money is currently being held in an interest-earning escrow account.

As reported by FXStreet on Wednesday, Ripple CEO Brad Garlinghouse confirmed reaching an agreement with the SEC staff, pending approval by the agency's commissioners.

XRP price stalled in the quest to break a confluence resistance highlighted in a previous analysis at $2.25, resulting in a sudden pullback that tested the critical $2.00 support level on Wednesday. Although the crypto market has shown resilience amid the extended tariffs and trade wars launched by US President Donald Trump, including a 245% tariff on China, investors are jittery about the short-term and long-term economic outlook. XRP faces a significant decline in bullish momentum.

An inverse head-and-shoulders pattern on the four-hour chart below hints at a potential 27% breakout to $2.78 if resistance at $2.20 (pattern neckline) is broken. This target represents the distance between the neckline and the inverted head, extrapolated above the breakout point.

XRP/USD 4-hour chart

It is worth pointing out that XRP faces immediate hurdles at the 50-day and the 100-day Exponential Moving Averages (EMA), holding at $2.07 and $2.09, respectively. Investor confidence will likely improve if XRP flips these two levels into support, paving the way for movement beyond the 200-day EMA at $2.16 and the neckline resistance at $2.20.

Bulls must remain focused to achieve short-term goals like validating the inverse head and shoulders breakout; otherwise, they risk being overshadowed by potential sell-side pressure based on the downward-sloping Relative Strength Index (RSI) indicator at 46.37. Moreover, a sell signal in the Moving Average Convergence Divergence (MACD) indicator may encourage more traders to flip bearish, supported by red histograms. Downside risks below $2.00 could be projected to $1.96, a resistance on April 8 turned into a support level, and $1.75, an anchor level tested on April 9.