The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is reportedly coming to an end, according to FOX Business journalist Eleanor Terrett. Reliable sources indicate that both parties are negotiating settlement terms, with Ripple pushing for more favorable conditions. However, despite the anticipation, crypto analyst Dom warns that XRP holders may not see the explosive price rally they hope for.

XRP’s Historic Surge: A Different Market Environment

In July 2023, a pivotal court ruling determined that XRP was not a security, triggering a historic price surge. The cryptocurrency doubled in value within four hours, reaching new highs before cooling off. That rally was largely fueled by unexpected news that clarified XRP’s regulatory status, leading to a wave of buying activity.

This time, however, the market has been expecting a settlement, removing the element of surprise. Dom argues that XRP’s price reaction may be far less dramatic than in 2023. The settlement talks have been ongoing, and leaks have already bolstered market confidence, potentially limiting a sharp upside move.

Ripple’s Focus: Legal Penalties and Corporate Strategy

Unlike the 2023 ruling, which directly impacted XRP’s classification, the current negotiations revolve around Ripple as a company. The SEC had accused Ripple of illegally selling XRP to institutional investors, leading to a $125 million penalty. This means the settlement’s impact may not directly translate into immediate bullish momentum for XRP.

While some traders anticipate a moderate rally, Dom suggests a 20% price increase as a more realistic target. At press time, XRP trades at $2.22, meaning a 20% rise would take it to around $2.64—far from its previous parabolic gains.

The Real Catalyst: Ripple’s Post-Settlement Plans

Despite the subdued expectations surrounding the settlement, Dom believes the real driver for XRP’s long-term growth could come from Ripple’s post-settlement initiatives. With legal uncertainties out of the way, the company may announce new partnerships, technological advancements, or expansion plans that could ultimately shape XRP’s future trajectory.

Also Read: XRPL 2.4.0 Update: Major Security Upgrades, Dynamic NFTs, and Migration to New UNL

For now, investors remain cautiously optimistic, watching closely for the official settlement announcement and Ripple’s next strategic moves.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.

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