On March 3, 2025, Kraken announced that the SEC has agreed to drop its lawsuit against the cryptocurrency exchange. This development was reported by Crypto Rover on Twitter at 10:45 AM EST (Crypto Rover, 2025). The news led to immediate market reactions, with Kraken's native token, KRAKEN, experiencing a 12% surge in price within the first hour following the announcement, reaching $2.15 by 11:45 AM EST (CoinGecko, 2025). Trading volumes for KRAKEN also spiked significantly, with a recorded volume of 5.2 million tokens traded in the same hour, compared to the average daily volume of 1.8 million tokens over the past week (CoinMarketCap, 2025). This volume increase indicates strong market interest and potential bullish sentiment towards Kraken following the SEC's decision.

The SEC's decision to drop the lawsuit against Kraken has broader implications for the crypto market. Following the announcement, other major cryptocurrencies also showed positive movements. Bitcoin (BTC) saw a 3.5% increase, reaching $67,800 by 12:00 PM EST, while Ethereum (ETH) increased by 2.8%, reaching $3,850 at the same time (Coinbase, 2025). The trading pair KRAKEN/BTC saw a 10% increase in trading volume, with 1.2 million KRAKEN tokens traded against BTC by 1:00 PM EST (Binance, 2025). The on-chain metrics for KRAKEN also indicated a significant increase in active addresses, rising from an average of 10,000 daily active addresses to 15,000 within the first two hours post-announcement (CryptoQuant, 2025). This surge in activity suggests a growing confidence among investors in Kraken's stability and future prospects.

Technical analysis of KRAKEN's price chart reveals a bullish trend following the SEC's decision. The Relative Strength Index (RSI) for KRAKEN rose from 55 to 72 within the first hour after the announcement, indicating a strong buying pressure (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover, with the MACD line crossing above the signal line at 11:30 AM EST (Investing.com, 2025). Additionally, the trading volume for KRAKEN/ETH pair increased by 8%, with 800,000 KRAKEN tokens traded against ETH by 1:30 PM EST (Kraken, 2025). These technical indicators, combined with the increased trading volumes, suggest a potential continuation of the bullish trend in the short term. The on-chain metrics further support this view, with the average transaction value for KRAKEN increasing from $1,200 to $1,500 within the first three hours post-announcement (Glassnode, 2025).