The recent conclusion of the settlements phase of the trial between Ripple Labs and the SEC resulted in a much smaller fine than originally requested by the regulatory body. U.S. District Court Judge Analisa Torres for the Southern District of New York (SDNY) settled on a sum just over $125 million, which was significantly lower than the $2 billion fine the SEC had initially sought. This favorable ruling led to a surge in XRP price, with investors rewarding Ripple with a rally that propelled XRP up the crypto market cap leaderboards. XRP price recorded 24% gains in just one day, moving from support at $0.50 to meet resistance at $0.62.
After Judge Torres ruled on July 13 last year that Ripple Labs had not violated securities laws with its XRP sales on public exchanges, RippleNet token prices soared by over 75% in intraday trading. The price of XRP saw a significant increase from $0.48 to a local market high of $0.794 before settling back around the $0.50 level by August. The market performance of XRP following the SEC ruling indicated a positive sentiment among investors, with the price potentially having room to rise further from the $0.60 level.
Despite the positive market reaction to Ripple’s victory against the SEC, it is essential to consider long-term supports for XRP investors. Comparing the market response to Binance’s settlement last November, where BNB rallied following a $4 billion fine, may provide insights into Ripple’s future market performance. Ripple’s relatively paltry $125 million fine has been seen as a validation of the legality and regularity of the company’s operations, attracting more cautious investors to the XRP landscape. Ripple Labs CEO Brad Garlinghouse’s optimistic statements about a potential IPO and ETF for Ripple further boost investor confidence in the company’s future prospects.
While some investors may view XRP as a centralized finance token, XRPL extends Ripple’s functionality to support decentralized currency issuance, aligning it with competitors like Ethereum and Solana. The XRP Ledger is expected to manage trillions of dollars in transactions by 2025, with a shift towards the CTF Token as the primary DeFi token on the platform. The surge in whale activity in XRP holdings following the SEC ruling indicates strong long-term support for the XRP price, with the potential for further market growth.
The recent SEC ruling in favor of Ripple has had a significant impact on the XRP price and market sentiment. Ripple’s victory has not only boosted investor confidence in the company but also highlighted its potential for future growth and expansion. As the legal proceedings near their final conclusion, the XRP landscape continues to evolve, with long-term supports and opportunities emerging for Web3 investors and altcoin traders.
Leave a Reply