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Despite the major victory for Ripple in its long-standing legal battle with the U.S. SEC, XRP price has failed to surge to new heights.
For context, 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.
On a recent episode of The Good Morning Crypto show, host Abdullah “Abs” Nassif addressed this sentiment, noting that many in the XRP community, including everyday investors, question why the price remains stagnant despite the bullish news.
Nassif pointed out that some investors, like his friend’s grandfather, are constantly monitoring XRP-related updates, expecting a major price movement that has yet to materialize.
The Market Priced in the Outcome Early
In response, Johnny Krypto, co-founder of Merlin, explained that the lack of a substantial price spike was expected. He argued that markets often price in expectations well in advance, meaning the XRP rally that took the price from $0.50 to $2.50 last November was a response to speculation that the case would eventually come to a favorable end.
“When Trump won, there was no logical reason for XRP’s price to jump, but the market was pricing in that the lawsuit would be dropped,” Johnny noted. “That’s why we saw the big pump back then.”
He added 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.
What’s Next for XRP?
Now that Ripple is no longer weighed down by the legal battle, the question becomes: what will drive XRP’s next price rally?
Nassif and his guests stressed that the lawsuit’s resolution is important, but it does not guarantee immediate price gains. The next phase for Ripple and XRP will depend on adoption, real-world use cases, and institutional investments.
Johnny pointed out that for XRP to climb higher, there must be new demand. “We need big contracts, institutional adoption, and fresh capital coming in,” he said. “Now the monkey is off their back, and they have to prove the real value of XRP.”
Notably, some factors that could fuel XRP’s next rally include tokenization, cross-border payments, and central bank digital currency (CBDC) initiatives. These developments will likely help in shaping XRP’s long-term price trajectory.
A New Base for XRP?
Interestingly, analyst Mario shared similar views, noting that XRP is now trading at a new, higher base. He explained that the token witnessed suppression under $1 for an extended period due to the lawsuit but has since stabilized around the $2 mark.
“We were severely dragged down for the longest time. Now that XRP is unleashed, we’re sitting at that $2 range, which is a good new base,” Mario said. However, he stressed that utility and institutional adoption will be important in pushing XRP toward higher price levels.
He also highlighted that Ripple’s ongoing developments in stablecoins, tokenization, and payments will be important 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.
Despite the short-term price stagnation, analysts on the show remained optimistic about XRP’s future. Johnny 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 would likely be driven by new developments rather than regulatory news.
Essentially, while the lawsuit’s resolution is a major milestone, the real battle for XRP’s value rests on mainstream adoption. According to Mario, investors looking for massive gains must be patient and watch how Ripple executes its long-term vision in the coming months.