The value of XRP has significantly dropped following the announcement of the settlement of Ripple's lawsuit with the U.S. Securities and Exchange Commission (SEC).
Lawsuit Closure
The lawsuit between Ripple and the SEC started over four years ago, in December 2020. Throughout this time, the company faced the delisting of its token and parting ways with partners. However, this week, the SEC withdrew its appeal, and Ripple followed suit, effectively ending the case. Ripple confirmed that the company will pay a fine of $50 million to the SEC, significantly less than the agency's original demand of $2 billion. Thus, despite the absence of a clear victory, Ripple can be considered a moral winner.
No Surge, Just Correction
XRP's price soared following Brad Garlinghouse's announcement but soon returned to previous levels. Funds sparked hopes for the beginning of a long rally; however, reality turned out different. The price is now under $2.05, losing more than 20% from last week's peak.
Price Reversal Potentials
Despite the downturn, factors remain that could change the situation: the potential creation of an ETF for Ripple in the U.S. or the company's public market entry. However, this may have already been priced into the current valuation.
The resolution of Ripple's lawsuit with the SEC did not lead to the expected surge in XRP's price; instead, it caused a drop. However, reversals are still possible due to potential forthcoming events around the company.
