On August 2, 2025, XRP crossed the $0.85 mark for the first time since early 2022, following a favorable court ruling that offered long-awaited regulatory clarity. The decision, delivered by the U.S. Court of Appeals, reinforced that XRP is not to be classified as a security when sold on secondary markets—putting a decisive end to the long-running legal battle between Ripple Labs and the SEC.
The market reaction was swift. Trading volume surged across major exchanges, and social sentiment turned overwhelmingly positive. Analysts are now eyeing short- to mid-term targets between $1.10 and $1.40, driven by a combination of technical breakouts, investor relief, and renewed institutional interest.
A multi-year battle comes to an end
Ripple’s legal battle with the U.S. Securities and Exchange Commission began in December 2020, when the regulator accused the company of conducting an unregistered securities offering. For years, XRP’s status remained in limbo, affecting its adoption, exchange listings, and institutional integration.
But in a decisive update this week, the appeals court upheld a 2023 district court ruling that transactions of XRP on secondary exchanges do not meet the Howey Test criteria for securities. This means XRP, in its most common use case, does not require SEC registration and can be freely traded like other digital commodities such as Bitcoin and Ethereum.
Legal analysts hailed the ruling as a “watershed moment” for digital asset regulation, noting that it sets a precedent for how altcoins may be treated under U.S. law moving forward.
Market reaction and investor confidence
Following the announcement, XRP saw a 35% intraday rally, climbing from $0.62 to above $0.85. The momentum was led by both spot buyers and leveraged futures traders betting on a continued breakout.
On-chain data revealed increased activity from long-dormant whale wallets, some of which had been inactive since 2021. At the same time, institutional platforms such as Coinbase Prime and BitGo reported a notable spike in XRP buy-side demand, signaling that regulated entities are once again comfortable engaging with the asset.
Social media platforms like Twitter and Reddit lit up with renewed enthusiasm, with the hashtag #XRPfreedom trending across crypto circles. Some traders even speculated that XRP could rejoin the top 3 cryptocurrencies by market cap by Q4 if momentum holds.
Ripple’s roadmap and ecosystem expansion
Beyond the legal win, Ripple Labs is moving fast to capitalize on the positive sentiment. CEO Brad Garlinghouse announced that the company would soon launch:
- A new enterprise-grade liquidity hub for stablecoins and CBDCs
- Expanded partnerships with banks in Latin America and Southeast Asia
- An accelerator program for fintechs building on the XRP Ledger (XRPL)
- Enhanced support for tokenized real-world assets (RWAs) on XRPL
Ripple’s focus appears to be expanding from just payments to becoming a broader Layer-1 platform for financial services, especially now that XRP’s legal baggage has been lifted.
Analysts predict new price targets
Technical analysts are closely watching resistance and Fibonacci levels around $0.96, $1.12, and $1.38, all of which could act as key breakout or rejection zones.
The daily RSI (relative strength index) is entering overbought territory, but momentum indicators show strong support from volume and bullish divergence across multiple timeframes.
Meanwhile, macro-focused analysts argue that the broader bullish cycle in crypto, combined with XRP’s favorable ruling, gives it a rare combination of technical breakout and fundamental narrative—a mix that could push prices past the psychological $1.00 barrier quickly.
Broader implications for the crypto market
The XRP ruling may have implications beyond Ripple. Lawyers suggest that tokens like ADA, SOL, and ALGO—which are also under regulatory scrutiny—could benefit from similar legal interpretations.
Furthermore, the decision undermines the SEC’s more aggressive stance on digital assets and may influence upcoming legislation like the Financial Innovation and Technology Act and Genius Act, both of which aim to formalise crypto classifications in U.S. law.
Industry groups such as the Crypto Council for Innovation and Blockchain Association welcomed the clarity, calling it “a major win for innovation, fair access, and legal consistency.”
Conclusion
XRP’s surge past $0.85 marks not just a price breakout but a turning point in its regulatory journey. With legal clouds lifting and fresh capital returning, Ripple and its ecosystem are poised for a new phase of growth.
Whether XRP can reclaim its former glory or break into new highs will depend on market sentiment, continued execution, and the broader trajectory of the crypto space. But for now, XRP holders finally have clarity—and a reason to celebrate.
