The aftermath of the long-awaited conclusion to the settlements phase of the trial left Ripple with a much smaller fine than initially expected by the SEC. U.S. District Court Judge Analisa Torres for the Southern District of New York (SDNY) settled on a sum just over $125 million, contrasting sharply with the $2 billion fine requested by the SEC. The response from investors was immediate, rewarding Ripple with a rally that pushed XRP price up the crypto market cap leaderboards. This surge led to XRP price gaining 24% gains for the day’s trading, moving from support at $0.50 to meet resistance at the $0.62 level.
Following the court’s ruling, XRP prices went parabolic, jumping over 75% in intraday trading and reaching a high of $0.794. However, the price eventually settled back to key support around $0.50 level by August. While the current situation may differ due to the case potentially nearing its final conclusion, the SEC still has the option to appeal the court’s ruling. Under Chairman Gary Gensler’s leadership, the U.S. regulator has shown significant aggressiveness towards Ripple Labs and XRP. Traders are now looking towards potential price increases as XRP may rise further from the $0.60 level in August.
Despite the initial rally post-SEC settlement, there is speculation about whether this latest development could lead to a “sell the news” situation for Ripple. Analysts suggest that a move above $0.66 could propel XRP price to hit $1.03, setting a mid-level target for the asset. However, if the smart money has already priced in a favorable ruling, the market may see a decline in XRP price following the initial bump.
To gauge the impact of the SDNY ruling on Ripple, analysts are comparing it to Binance’s settlement with the government last November. Despite facing a $4 billion fine, BNB rallied immediately, showcasing the market’s confidence in Binance’s operations. Ripple’s $125 million fine, in comparison, is seen as a validation of the legality and regularity of the company’s operations. This comparatively lower fine may entice cautious investors to enter the XRP landscape.
Future Predictions and Ripple’s Expansion
Ripple Labs CEO, Brad Garlinghouse, is optimistic about the company’s future, hinting at a potential IPO by 2025. Garlinghouse believes that an ETF for Ripple is inevitable due to the demand from regulated investors. The recent court victory puts Ripple closer to these goals, signaling a positive trajectory for the company. Additionally, expansion plans for Ripple include exploring an IPO once the SEC lawsuit concludes.
Despite being considered a CeFi token by some, XRPL extends Ripple’s functionality to support decentralized currency issuance similar to competitors like Ethereum and Solana. The XRP Ledger is projected to manage trillions in transactions by 2025, establishing a strong foundation for long-term support. Furthermore, the increase in XRP whale activity following the SEC ruling indicates a bullish sentiment towards XRP’s future growth. Analysts believe that the elevated XRP whale and DeFi activity in July is a positive indicator for XRP’s performance.
The aftermath of the SEC settlement has had a significant impact on Ripple and its future trajectory. With positive market responses and optimistic predictions, Ripple seems poised for growth and expansion in the coming years.
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