Ripple’s recent legal victory in its long-running battle with the U.S. Securities and Exchange Commission (SEC) was expected to provide a major boost to XRP, but the market’s response has been far more muted than anticipated. Despite the favorable ruling, XRP’s price has shown only modest gains, and it remains below critical resistance levels. The lack of a significant price rally has raised questions about what’s holding XRP back despite a seemingly positive development for the cryptocurrency.

XRP’s Price Movement Following the Legal Win

When Ripple secured a favorable ruling from the SEC, XRP briefly spiked to $2.43, marking a momentary surge of optimism. However, the excitement quickly waned, and the price stabilized around $2.38. As of now, XRP is hovering just above the 50-day moving average ($2.33) but remains below the 200-day moving average at $2.52. This lack of a decisive breakout suggests that the legal victory has not translated into a sustained bullish trend. While the price has made a modest upward move, XRP’s failure to maintain its gains indicates that a bullish reversal is not yet confirmed.

XRP’s price continues to move within a narrow ascending channel, attempting to break higher. However, unless the price can consistently reclaim the $2.50 mark, there is a risk of a retreat back into a descending channel. March saw this type of price action, with XRP struggling to break past the resistance levels that have capped its upward movement. Therefore, the market remains hesitant to push the asset beyond its current range, and this could suggest that a stronger rally is not yet imminent.

Address Growth and Market Participation

Despite the legal clarity brought about by Ripple’s court win, XRP’s growth metrics remain more tempered. Data from CryptoQuant indicates that the number of addresses on the XRP Ledger has steadily increased, reaching 6.7 million. This suggests that there is continued long-term interest in XRP, but the growth has not been explosive. The increase in active addresses reflects a slow, gradual buildup of market participation rather than an overwhelming influx of new users or traders.

This restrained growth in address activity hints that while the legal win provides regulatory certainty, it has yet to drive substantial new adoption. In contrast, explosive growth in addresses and transaction volume could have spurred a more substantial rally. Instead, XRP seems to be in a holding pattern, with market participants adopting a wait-and-see approach to gauge the long-term effects of the legal victory.

Resistance to a Bullish Breakout

For XRP to regain significant upward momentum, it needs to break above the key resistance level of $2.50 and establish solid support above it. Until this happens, XRP’s price may remain stuck in its current range. The resistance at this level has proven challenging for the cryptocurrency, and the lack of a sustained move above it suggests that the market is still skeptical about the asset’s immediate future.

On-chain data points to a more cautious approach by XRP holders and investors. Although the number of addresses continues to climb, the lack of an explosive surge in market participation suggests that many investors are waiting for further confirmation before making more significant moves. Without a substantial increase in buying volume or a breakout above key resistance levels, XRP is unlikely to see a major price surge in the near future.

Long-Term Outlook for XRP

While Ripple’s legal clarity is undoubtedly a positive development, XRP’s price and network activity are likely to remain in a state of flux for the time being. Short-term gains are likely to remain capped unless there is a surge in investor confidence or a significant increase in adoption. Ripple’s legal victory provides a solid narrative for the long-term prospects of XRP, but the market will need more than just regulatory certainty to ignite a sustained rally.

To see meaningful price action, XRP will need to break through its resistance levels and attract more active participants to the network. Until then, the cryptocurrency will likely continue its gradual growth with only modest fluctuations in price. For now, the market’s response to Ripple’s court win indicates that patience will be required before XRP can achieve a breakout beyond its current price range.