XRP, the cryptocurrency at the center of a long-standing legal battle with the US Securities and Exchange Commission (SEC), has failed to surge to new heights despite a major victory in its case.
The SEC recently dropped its appeal against Ripple, a move expected to eliminate all legal baggage and potentially trigger a massive price rally for XRP. However, XRP only climbed to $2.60 before retreating to $2.43, leaving many investors puzzled.
Experts point out that the lack of a substantial price spike was expected. Markets often price in expectations well in advance, meaning the recent XRP rally from $0.50 to $2.50 last November was a response to speculation that the case would eventually come to a favorable end.
Johnny Krypto, co-founder of Merlin, explained that if the SEC had maintained the appeal, XRP’s price would have likely plummeted instead of staying stable. Since traders had already positioned themselves based on this expectation months ago, there was little room for additional upside when the news became official.
Now that Ripple is no longer weighed down by the legal battle, the question becomes: what will drive XRP’s next price rally? Experts stress that the lawsuit’s resolution is important but does not guarantee immediate price gains. The next phase for Ripple and XRP will depend on adoption, real-world use cases, and institutional investments.
New demand, including tokenization, cross-border payments, and central bank digital currency (CBDC) initiatives, are seen as key drivers of XRP’s long-term price trajectory. Analysts believe that XRP is now trading at a new, higher base after years of suppression due to the lawsuit.
Ripple’s ongoing developments in stablecoins, tokenization, and payments will be crucial in driving long-term growth. Institutions can now enter the XRP market without fear of regulatory backlash, which could open the door for significant capital inflows.
While short-term price stagnation is puzzling, analysts remain optimistic about XRP’s future. Johnny Krypto suggested that in a bullish market, XRP could reach price targets of $4 to $8, and in the event of a “super cycle,” it could go even higher. However, he cautioned that XRP’s next major move will likely be driven by new developments rather than regulatory news.
Source: https://thecryptobasic.com/2025/03/21/heres-why-xrp-price-has-not-skyrocketed-despite-sec-dropping-ripple-lawsuit