The recent decision by the U.S. Securities and Exchange Commission (SEC) to drop its appeal in the Ripple case has sparked optimism in the market, particularly concerning XRP’s price. The clarity around Ripple’s legal status is easing concerns, allowing institutions to feel more confident about investing in XRP. With the SEC no longer actively litigating against Ripple, institutions are likely to increase their investments.
Despite the positive news that the SEC has dropped its appeal in the Ripple case, XRP’s price didn’t explode as many might have expected. It didn’t skyrocket by 30-40% or break past $3.
However, crypto expert Dark Defender believes XRP could skyrocket by over 12,000%, possibly reaching $280 in the next few years. This prediction is based on past trends, like the 2017 rally when XRP went from pennies to nearly $4. He sees similar patterns in the current market, suggesting another big price jump could be coming.
Institutional Investments and Spot ETFs
Attorney Fred Rispoli, on the Thinking Crypto podcast, said that the dropping of the appeal could lead to a more favorable environment for institutional investors. Additionally, the SEC might be more inclined to approve XRP spot ETFs now that the active litigation is no longer hanging over the case. This could be a pivotal moment for Ripple and its long-term business strategy, especially as institutional interest grows.
Risk Averse Institutions and Programmatic Sales
While institutions are generally risk-averse, the removal of uncertainty regarding Ripple’s legal standing could lead to increased institutional interest. The SEC’s decision to drop the appeal removes a significant layer of risk. However, institutions may still be hesitant until the final resolution is achieved. The appeal’s dismissal brings Ripple closer to the goal of fully clearing its name, but some risk remains until the final judgments are made clear.
Waiting for Ripple’s Next Moves
As Ripple moves past the appeal, the next step will be to see how they communicate with institutional partners. While the appeal’s dismissal is a major development, Ripple will likely continue to engage in negotiations and wait for official documentation before announcing partnerships or other major moves. The market will likely see XRP’s price respond positively in the coming weeks as these developments take place.
