XRP Surges 16% After Ripple Wins SEC Case

Ripple-affiliated XRP experienced a significant price surge, rising as much as 16% within less than 24 hours following the news that Ripple's legal dispute with the U.S. Securities and Exchange Commission (SEC) had concluded after four years. This development indicated a positive shift in the regulatory environment for XRP and the broader cryptocurrency market.

However, XRP has since lost at least half of its gains, falling below the key $2.50 zone. This has led investors to question why the cryptocurrency is not experiencing a more substantial price increase despite Ripple's victory in the SEC enforcement case.

Early crypto investor Armando Pantoja recently shared his thoughts on XRP’s price action, questioning why the cryptocurrency has not skyrocketed to $10 since the news. According to Pantoja, the lackluster price action is due to the SEC not yet officially confirming its dismissal of the Ripple appeal. On March 19, Ripple CEO Bradley Garlinghouse announced that the SEC had agreed to drop its appeal of a July 2023 ruling, which stated that Ripple did not violate federal securities laws in selling XRP to retail investors through exchanges. However, the SEC has not issued any official statement regarding the matter, leaving cautious investors on the sidelines.

Additionally, Ripple still faces a legal barrier in the form of an injunction issued by District Judge Analisa Torres, which prevents the firm from selling XRP to institutional investors, such as banks and financial institutions.

Pantoja also discussed XRP’s price action, noting that the token’s movement is more stable compared to meme coins. He believes that derivatives have a greater impact on XRP’s price stability than smaller coins. Therefore, explosive 10X XRP rallies overnight are not likely. “10X will come soon, but not in 24 hours,” Pantoja summarized.

With regulatory headwinds seemingly subsiding, the future looks bright for XRP. However, the lack of an official statement from the SEC and the ongoing injunction against selling XRP to institutional investors may continue to impact the cryptocurrency's price action in the near term. Investors will be closely watching for any further developments in Ripple's legal situation and the potential for a significant price rally in the coming months.