XRP Price Drops 17% Despite Ripple's Legal Victory Over SEC

The price of XRP, the cryptocurrency developed by Ripple Labs, has taken an unexpected downturn in recent days, contrary to the bullish expectations

The price of XRP, the cryptocurrency developed by Ripple Labs, has taken an unexpected downturn in recent days, contrary to the bullish expectations following the announcement of the end of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC).

According to industry data, XRP has fallen by 11.7% since last Sunday, dropping from $2.5 to $2.13 in less than four days.

Many crypto analysts and retail traders had anticipated that the conclusion of the four-year-long legal case between Ripple and the SEC would act as a catalyst for a price surge, attracting new buyers into the XRP ecosystem.

However, the market saw a significant sell-off, with XRP’s price dipping lower than expected despite the news of the lawsuit’s resolution.

The case, which began in December 2020 with the SEC’s allegations that Ripple had sold unregistered securities in the form of XRP, reached its climax last week as the SEC and Ripple reached a settlement agreement.

The SEC’s complaint focused on three types of cryptocurrency offerings: (1) an initial coin offering (ICO) to raise capital for a new cryptocurrency, (2) the sale of cryptocurrency to institutional investors, and (3) the use of cryptocurrency in a decentralized ecosystem.

The SEC's suit against Ripple and its CEO, Brad Garlinghouse, had far-reaching implications for the cryptocurrency industry as a whole.

The agency's allegations, if proven in court, could have resulted in substantial penalties for Ripple and significantly affected the regulatory landscape for cryptocurrency issuers and investors.

Garlinghouse himself highlighted that the case had been destined for resolution, calling the conclusion a victory for Ripple and stating that it proved the company was on “the right side of history.”

Despite Ripple’s insistence on its innocence regarding the SEC’s allegations, the long-running litigation had clearly affected XRP’s performance in the market.

While Bitcoin and Ethereum surged in value amid growing crypto adoption, XRP’s price struggled to gain momentum, and the news of the lawsuit’s resolution didn’t seem to provide the bullish push that many traders had hoped for.

As XRP faces continued market pressure, the outcome of the Ripple-SEC case was expected by many to be a major turning point.

However, instead of fueling optimism, the legal resolution has failed to trigger the anticipated buying wave, leaving some to question whether the token can regain momentum moving forward.