Crypto investors celebrated a landmark victory after the United States Securities and Exchange Commission (SEC) dismissed its lawsuit against Ripple. However, market analysts argue that the outcome was already factored into XRP’s price, limiting the immediate impact of the decision.
Ripple vs. SEC: A Four-Year Battle Ends
On March 19, Ripple CEO Brad Garlinghouse announced that the SEC had officially dropped its legal action against the blockchain company. The lawsuit, which accused Ripple of conducting an unregistered $1.3-billion securities offering in 2020, had cast uncertainty over the company’s operations and the broader crypto industry for years.
While the decision marks a significant regulatory win for Ripple, industry experts suggest that the market had long anticipated this outcome. Dmitrij Radin, founder of Zekret and CTO of Fideum, noted that XRP’s price action in recent months reflected investor expectations of a favorable resolution.
“Yes, they are dropping the case, but there was already the appeal,” Radin stated in a March 20 interview on Chainreaction X. “It’s great for Ripple’s U.S. expansion, but it’s already priced in. I don’t see a big impact on price or the market.”
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XRP Price Movement: Relief Rally Followed by Decline
Following the announcement, XRP experienced an 11% rally, briefly testing the $2.5 psychological resistance level. However, the token quickly retraced, dropping over 6.3% since March 19, according to Cointelegraph Markets Pro data.
Nansen analyst Nicolai Sondergaard echoed Radin’s sentiment, attributing XRP’s lack of sustained momentum to a combination of preemptive pricing and broader market conditions. “It was already expected at this point, and the macro environment is not doing XRP any favors,” Sondergaard noted.
Technical Analysis: Potential for a 75% Rally?
Despite short-term weakness, some technical indicators suggest a bullish breakout for XRP. A symmetrical triangle pattern on the weekly chart hints at a potential 75% rally, targeting $4.35 by June if XRP sustains its upward trajectory. However, failure to hold key support at $2.35 could see prices retreat to $1.28.
Beyond price action, the SEC dropping the case is expected to have a positive long-term impact on the crypto industry. The decision could signal a shift toward a more crypto-friendly regulatory landscape, boosting investor confidence in blockchain projects navigating U.S. regulations.
Also Read: Ripple’s Win Against the SEC: What It Means for Crypto Regulation and XRP’s Future
As Ripple moves forward with its expansion plans, the end of its legal troubles may pave the way for renewed institutional adoption and strategic partnerships, setting the stage for future growth in the crypto space.
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.
