XRP price movement has left many investors puzzled, especially after Ripple officially resolved its extended legal battle with the U.S. Securities and Exchange Commission (SEC). Instead of the expected breakout rally, XRP has dipped below a key psychological threshold just days after the case concluded.

End of SEC Lawsuit Brings Temporary Relief

Last week marked the formal conclusion of Ripple’s nearly five-year legal confrontation with the SEC. The two parties filed jointly to end their appeal and cross-appeal in the Second Circuit, officially closing the case that began in December 2020. This resolution sparked an initial surge in XRP’s value, briefly climbing to $3.38. Yet, the optimism was short-lived, and the price has since slid back under the critical $3 line.

This drop has raised concerns among traders who anticipated that a victory in court would act as a major catalyst for long-term gains.

Market Already Priced In Legal Outcome

The crypto community quickly took to social media platforms like X to question the absence of a rally. When asked why XRP didn’t soar after the SEC’s legal defeat, market analyst Zach Humphries explained that much of the bullish sentiment had already been absorbed into the market ahead of the decision. The prior reelection of Donald Trump and expectations for a crypto-friendly administration had already driven XRP to a fivefold increase within five weeks.

Humphries pointed to the classic “buy the rumor, sell the news” trend. He noted that since both Ripple and the SEC had publicly planned to notify the court of their appeal status, the dismissal announcement held little surprise for market participants. Unlike the unexpected July 2023 court ruling that determined XRP is not a security—sparking a 100% surge in one day—the final resolution carried less weight on price action.

From Legal Clarity to Real-World Adoption

According to Humphries, ending the lawsuit is not sufficient to push XRP higher. He emphasized the need for authentic institutional engagement, particularly from U.S. banks integrating RippleNet solutions. Further progress in offering tokenization-as-a-service will be critical to XRP’s future value trajectory.

Ripple has indeed been laying the groundwork for such developments. Before the legal settlement, they had already been forging partnerships with notably established financial entities. However, these efforts have yet to wield substantial influence on XRP’s valuation.

Ripple’s legal win may open doors, but widespread XRP adoption requires deeper integration into real-world banking systems.

Investor Outlook Remains Optimistic

Despite the lackluster price behavior, several crypto analysts remain confident in XRP’s long-term potential. Analyst Dark Defender recently dismissed claims that the token will trade sideways, calling it “naive” to believe $3 is the ceiling.

Other market watchers, including Mario Nawfal and Ali Martinez, propose price forecasts between $10 and $12, contingent on a broader market upswing. More aggressive predictions from experts like Patrick Riley and Dustin Layton stretch XRP’s future value to the $30–$50 range before the close of 2025. Some, like Versan Aljarrah, even speculate long-term valuations in the four-digit territory.

Related: XRP Price: $12M Max Pain for Bears

While such projections might seem ambitious, they highlight the underlying sentiment that the token’s utility and institutional partnerships—not legal milestones—will ultimately dictate its success.