SEC Dismisses XRP Lawsuit, But Market Reaction Turns Dull
The United States Securities and Exchange Commission (SEC) officially dropped its four-year lawsuit against Ripple Labs on March 19, bringing an end to a case that had accused the company of conducting a $1.3 billion unregistered securities offering in 2020. Ripple CEO Brad Garlinghouse made the announcement, sending instant buzz through the crypto community.
However, despite an 11% pump in response to the news, XRP has failed to hold above the psychological $2.5 mark and has dropped over 6.3% thereafter.
Analysts: Outcome Was Already Priced In
Commentators state that the muted reaction was due to the outcome of the lawsuit having been anticipated well in advance—particularly after the election of Donald Trump, which had generated expectations of a more favorable regulatory landscape for crypto.
Fideum CTO Dmitrij Radin commented, “It’s good for Ripple, but the fact is already priced in. I don’t believe it will have a material impact on price or the market overall.”
Nansen Analyst Echoes Sentiment
Nicolai Sondergaard, research analyst at Nansen, noted that market sentiment and expectations for the lawsuit to conclude were the cause of XRP’s lackluster momentum.
“It was already expected,” he said. “The uncertain macro environment is not favoring XRP either.”
XRP’s Technical Outlook
XRP is currently hovering near a key technical level. A successful breakout could push it to $4.35 by June—a 75% gain. But failing to hold its lower trendline could send it down to $1.28.
Long-Term Narrative Shift
Even with the muted price action, analysts think the SEC’s ruling is a positive long-term regulatory tone shift. Radin said this news changes the narrative, providing optimism for more favorable terms for crypto projects in the U.S. moving forward.
