**Summary**
– Was it a classic ‘sell-the-news’ event? It appears so, as XRP’s price has sharply declined since CEO Brad Garlinghouse’s recent announcement.
– Is the excitement over, or could something reignite interest in Ripple’s cross-border token?
**Lawsuit Conclusion**
The saga began over four years ago, in December 2020, when the US SEC targeted Ripple for selling unregistered securities (XRP) worth $1.3 billion. The impact on Ripple was swift as exchanges delisted the token and former partners parted ways. Over the next four years, the journey was complex, but Ripple appeared to have the upper hand due to favorable court rulings. Although the SEC achieved a minor victory when Judge Torrest required Ripple to pay $125 million in penalties, it was far less than the $2 billion initially sought, prompting an appeal in 2024. This appeal was dropped last week when CEO Brad Garlinghouse announced on X that the case had essentially concluded with the SEC’s decision. Ripple’s Chief Legal Officer confirmed that the firm had also dropped its appeal, marking the end of the lawsuit. Ripple still owes $50 million to the SEC, yet the outcome seems like a moral victory. Given this, a significant surge for XRP might have been expected.
**No Surge, Just Correction**
Following Garlinghouse’s announcement last week, XRP initially rose from $2.3 to $2.6. Many anticipated the start of a major rally, but the reality was starkly different. XRP lost nearly all gains within a couple of days and struggled below $2.5, eventually dropping to $2.05, marking a 20% loss from last week’s peak. Its competition with USDT for the third spot by market cap is faltering, with a $25 billion difference now between them. A prominent analyst recently warned that XRP could decline to $1.2 if the $2 support is breached, which is currently being tested. Overall, this appears to have been a classic ‘sell-the-news’ event for XRP’s price, though Ripple continues to succeed on various fronts. Nonetheless, several factors could potentially alter the asset’s price direction in the coming months, such as the possibility of having its own ETF in the U.S. or Ripple going public. Alternatively, these factors may already be factored into the market, suggesting further challenges ahead.
