XRP's Slow Reaction Despite SEC Lawsuit Win

When the news broke that the SEC had dropped its lawsuit against Ripple, XRP briefly surged 16%, reaching a high of $2.60.

The cryptocurrency market continues to display a mixed state of fear and greed, with the Fear & Greed Index currently standing at 32, signaling that there is still more fear than greed among crypto traders.

This coincides with a slowdown in the price momentum of Bitcoin and Ethereum, both of which experienced significant volatility in recent days.

Meanwhile, XRP has maintained relative stability despite the U.S. Securities and Exchange Commission’s (SEC) decision to drop its lawsuit against Ripple.

Many investors had anticipated a sharp price rally following the resolution of the lawsuit, but XRP’s reaction has been slower than expected.

When the news broke that the SEC was dropping its lawsuit against Ripple and executives had reached a settlement with the regulator, XRP briefly surged 16%, reaching a high of $2.60.

However, this excitement was short-lived, and the price quickly retracted to $2.38 the following day.

This subdued response left many investors questioning why XRP did not experience a sustained breakout despite the legal victory.

According to crypto analyst Armando Pantoja, a key reason for this cautious market reaction is the absence of an official SEC statement confirming the lawsuit’s withdrawal.

While Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have spoken publicly on the matter, many institutional and retail investors are waiting for formal confirmation from the SEC before making significant investment moves.

"The lack of a direct statement from the SEC might be slowing down the momentum," Pantoja noted.

Optimism Remains High Among Analysts

Despite XRP’s current stagnation, analysts remain optimistic about its long-term potential, with some experts predicting that it could surge beyond $8 in the future.

Several key factors are expected to drive this price increase.

Firstly, legal clarity is a significant milestone for Ripple, but real-world adoption remains the key to XRP’s long-term growth.

Ripple’s expanding partnerships with financial institutions, increased on-chain activity, and growing use cases for XRP as a bridge currency are all expected to contribute to its potential for price appreciation.

However, analysts urge patience as market sentiment is still recovering from a prolonged bear phase, and many investors remain hesitant to re-enter the crypto space aggressively.

Moreover, the emergence of Bitcoin and Ethereum ETFs has sparked optimism among institutional investors, who are now entering the market with greater sums of money.

Finally, as the regulatory environment stabilizes and institutional confidence in XRP grows, a more sustained upward trajectory could emerge.

This optimism is evident in the predictions of some analysts, who believe that XRP could reach price levels beyond $8 in the long term.

"It's a matter of when, not if, we see a breakout to new highs for XRP," said Ben Armstrong, a crypto trader and influencer.

"With the SEC case closed, institutions can now fully allocate to crypto, and they're starting with Bitcoin and Ethereum. But as we move through 2024, we'll see more diversified portfolios, and I think we could see a strong move into altcoins like XRP."

Overall, while XRP’s muted price action following its legal victory reflects broader market uncertainty rather than a lack of potential, several institutional and technical factors could pave the way for a sustained breakout in the months to come.

With institutional adoption, ETF developments, and long-term supply dynamics in play, many experts believe that XRP’s breakout is a matter of “when” rather than “if.”

Investors may need to exercise patience as the market digests these developments, but the road ahead looks promising for XRP’s long-term growth.