XRP Plummets 20% After Ripples Lawsuit Closure Against SEC, Whats Next?
TL;DR
- Was it a classic sell-the-news event? It seems so, as XRPs price has tumbled hard since Brad Garlinghouses triumphant announcement last week.
- Is the hype over, or can something bring back Ripples cross-border token?
Lawsuit Closure
It all started over four years ago, in December 2020, when the US SEC went after Ripple for selling unregistered securities (XRP) for $1.3 billion. The hit against Ripple was immediate as exchanges delisted the token, while former partners went away.
The following four years were filled with twists and turns, but the company was actually in the lead, at least according to several court rulings that went its way. Moreover, its top two execs were exonerated. The SEC notched a minor win when Judge Torrest ruled that Ripple has to pay $125 million in penalties, but that was far off the $2 billion the agency asked for, which is why it appealed in 2024.
However, that appeal was dropped last week when the companys CEO, Brad Garlinghouse, announced on X that the case had essentially ended with the Commissions decision. Ripples CLO confirmed that the firm has dropped its own appeal, which marked the end of the lawsuit. Oh, and the company still needs to make a payment to the SEC, but its not $2 billion, not even $125 million only $50 million.
Although the lawsuits conclusion is not a landslide victory for Ripple, it sure seems as if the company emerged as the moral winner. So, you would expect a massive surge for XRP, right?
No Surge, Just Correction
As with all major announcements, XRP reacted well to Garlinghouses statement last week and went from $2.3 to $2.6 within minutes. While many anticipated this to be the start of a major rally, the reality is entirely different.
XRP lost almost all gains within a day or two and was stuck below $2.5 for a while. However, the market-wide retracement hit the asset hard. As of press time, XRP is down to $2.05, which means that it has lost over 20% of the peak from last week.
Its battle with USDT for the third spot in terms of market cap seems lost, as theres a $25 billion gap between the two now. Moreover, a popular analyst warned recently that XRP could plunge toward $1.2 if the $2 support is broken to the downside, which is now being tested.
All in all, the signs point that this was a classic sell-the-news event for XRPs price even though Ripple is winning on multiple fronts.
Nevertheless, certain factors could still reverse the assets price trajectory in the following months, such as the potential to have its own ETF in the States or Ripple going public. Or, perhaps, those could have already been priced in, and theres more pain ahead.
The post XRP Plummets 20% After Ripples Lawsuit Closure Against SEC, Whats Next? appeared first on CryptoPotato.
Read more: https://cryptopotato.com/xrp-plummets-20-after-ripples-lawsuit-closure-against-sec-whats-next/
Text source: CryptoPotato
