XRP price soars 15% as SEC drops appeal of its lawsuit against Ripple Labs

The price of XRP, the cryptocurrency associated with Ripple Labs, surged to $2.56 following the U.S. Securities and Exchange Commission's (SEC) decision to withdraw its appeal

The U.S. Securities and Exchange Commission (SEC) has decided to withdraw its appeal against Ripple Labs, paving the way for the case to be closed. This move follows a lower court ruling in July that largely favored Ripple in the SEC's lawsuit over the company's XRP token sales.

The SEC's decision to drop the appeal is a major win for Ripple and the crypto community. It removes a key regulatory obstacle for Ripple, allowing the company to focus on its expansion plans.

The legal battle had a significant impact on XRP's market performance. After remaining below the $1 mark for almost three years, the token's price surged to $0.8 in December 2020 following the SEC's lawsuit.

At the time, the regulator claimed that Ripple conducted a $1.3 billion unregistered securities offering through XRP token sales.

The case dragged on for over four years, tying up Ripple's operations and affecting investor sentiment. However, the case took a decisive turn in July when a federal judge ruled largely in favor of Ripple.

The ruling stated that the SEC failed to adequately demonstrate that XRP was a security. It also recognized that Ripple's activities in selling XRP to institutional investors fell under an exemption from registration.

Reacting to the development, Ripple CEO Brad Garlinghouse said in a tweet that the ruling is a resounding victory for both Ripple and crypto.

This is it - the moment we've been waiting for. The SEC will drop its appeal - a resounding victory for Ripple, for crypto, every way you look at it.

The future is bright. Let's build.

According to a report by CCXV, the SEC's decision to withdraw its appeal is a major win for Ripple and will allow the company to continue operating with greater clarity and focus on its plans to expand its business.

The news also had a positive impact on investor sentiment, with XRP quickly breaking past the $2.50 mark as traders reacted to the development.

Furthermore, large investors, often called "whales," have been steadily accumulating XRP in recent months.

Data from blockchain analytics firm Santiment shows that wallets holding at least 1 million XRP have increased their holdings by 6.5% over the past two months.

These whale wallets now control about 46.4 billion XRP, which is currently worth around $114 billion at current prices.

This massive holding underscores the strong interest in XRP from high-net-worth investors.

The report also noted an explosive growth in network activity on the XRP blockchain, with March data showing six times more unique wallets interacting on the network compared to previous months.

This surge in both price and activity suggests a strong confidence in XRP's future prospects, which may attract many investors who had remained on the sidelines during the legal uncertainty.

Investors are now entering positions as they anticipate a continuation of the bullish trend for the token.

The market impact extended beyond just XRP, with Bitcoin rising 3.2% to $85,972 and Ethereum gaining nearly 4% to $2,019 following the news.

The global cryptocurrency market capitalization also increased by 3% to $2.81 trillion within 24 hours of the announcement.

This broad-based market response highlights how regulatory clarity for one major project can have a knock-on effect on the entire crypto ecosystem.

Commenting on broader implications, Ryan Lee, Chief Analyst at Bitget Research, stated that Ripple's latest legal victory against the S.E.C. clarifies XRP's regulatory status, potentially classifying it as a commodity and spurring institutional confidence.

Lee added that this development could pave the way for XRP E.T.F.s and weaken the S.E.C.'s aggressive stance, creating a more crypto-friendly environment that benefits the wider altcoin market.

After a lower court largely ruled in favor of Ripple in July, the S.E.C. had until March 3 to file an appeal against the ruling.

The regulator's decision to drop the appeal comes as no surprise to many in the crypto community, who had anticipated this move.

With the lawsuit now behind them, Ripple can focus on expanding its business and exploring new opportunities for collaboration.

Crypto analyst Dark Defender shared a technical analysis suggesting XRP broke above a key descending trend line, which could be a significant development for the token's price in the coming months.

Their Elliott Wave analysis also suggests that XRP could reach targets between $3.94 and $4.50 in the coming months.

Some more optimistic projections see XRP potentially rising above $6 if the current bull cycle continues, which would take the token to all-time highs.

Adding to the positive outlook, Garlinghouse hinted in a Bloomberg interview that XRP could play a role in a U.S. strategic digital asset stockpile. This follows President Donald Trump's executive order in early March proposing a national crypto