Last week, Ripple and the U.S. Securities and Exchange Commission jointly moved to dismiss their appeals in the Second Circuit, formally ending the legal battle that began in December 2020. The court filing removed a major regulatory overhang for XRP, but the market response since the announcement has been muted.
After an initial advance to $3.38, the digital asset has since declined, briefly losing the crucial $3 threshold that many traders see as a key support level.
XRP Army Weighs In
The end of the lawsuit produced a price uptick that exceeded 10% from the prior session, but XRP did not sustain those gains. Within days, the token traded back under $3, mirroring its decline from early August. This prompted questions among investors about why the formal conclusion of the lawsuit did not lead to a significant rally. Observers have shared multiple potential explanations for the digital asset’s underperformance.
Expectations Were Largely Priced In
Market commentators argue that much of the positive outcome had already been reflected in XRP’s price ahead of the filing. Zach Humphries, an entrepreneur and crypto enthusiast, explained that the lawsuit’s outcome was already priced in. This suggests that no major surge was expected after the end of this legal battle.
A lot of it was priced in. It did a 5x in 5 weeks after Trump got in. Now we need more than speculation. We need U.S. banks and institutions adopting ripples solution. We need ripple to offer and deliver on tokenization as a service for the big banks.
— Zach Humphries (@Z_Humphries) August 17, 2025
Following Donald Trump’s election victory in late 2024 and the announcement of former SEC Chair Gary Gensler’s resignation, XRP went on a historic run, rising over 500% between November 2024 and January 2025.
The dismissal of the appeal appears to have fulfilled market expectations rather than created new ones, leaving limited additional upside once the news became public. This contrasts with the July 2023 court ruling, which many market participants perceived as an unexpected clarification that XRP was not a security. That decision produced an immediate, large intraday move.
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What Will Trigger the Next XRP Price Bull Run
Humphries emphasized that legal clarity alone is unlikely to drive sustained appreciation without tangible increases in real-world usage. He highlighted the need for institutional adoption, including integrations by U.S. banks and deployment of tokenization services to financial counterparties, before price momentum can be expected to continue.
Ripple has pursued partnerships and product development aimed at those outcomes for some time, but the market has yet to respond materially to those efforts. Despite the tepid short-term reaction, some market analysts maintain bullish long-term forecasts for XRP, with targets ranging from the low double digits to levels as high as $50 or more.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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