Expert Reveals Why XRP Price Failed to Pump in 2025

There have been high expectations for XRP price in 2025. Though XRP price reached its all-time high of about $3.6, it is currently trading over 40% lower than that. XRP price has not met the projections that many anticipated.

TheCryptoBasic Page on X shared insights from market analyst Zach Rector explaining why Ripple token struggled to gain momentum this year.

SEC Lawsuit Against Ripple Token Dragged Progress

According to TheCryptoBasic, Rector mentioned that the first major hurdle for XRP was the prolonged SEC lawsuit against Ripple. The case extended far longer than anyone expected, finally concluding in August 2025. This date marked the certification that both the SEC and Ripple dropped their appeals.

Rector explained that the delay was caused by Gary Gensler, the outgoing SEC chair, who filed a last-minute appeal just five days before leaving the agency. This kept the case alive deep into 2025, even though investors thought it would have ended years earlier. XRP price remained restrained for most of the year because of this legal uncertainty.

Late Arrival of XRP Spot ETFs Slowed Momentum

Rector also pointed to XRP’s delayed spot ETFs as a factor. No issuer could launch an ETF while the lawsuit remained active. Once the case closed, six of seven issuers quickly updated their S-1 filings, yet the ETFs did not go live until November 2025.

Rector noted that the government shutdown added further delays, forcing issuers to use a workaround for the 20-day countdown while the SEC operated at limited capacity. This timing pushed ETF inflows too late in the year to generate the type of rally many anticipated.

Clarity Act Stalled Institutional Participation in Ripple

The third and perhaps biggest obstacle came from Washington. Rector emphasized that the Clarity Act, a major crypto market structure bill, failed to pass. Banks and institutions are reluctant to fully commit to assets like Ripple token without clear rules on token classifications, custody requirements, securities laws, and platform operations.

While international institutions already use Ripple’s on-demand liquidity system to settle tens of billions in payments annually, U.S. institutions remain on hold. Disagreements over stablecoin yield restrictions, conflict-of-interest rules, and DeFi regulation have kept the bill stalled. Rector expects these issues to delay institutional adoption until early 2026, affecting Ripple price and Ripple token’s growth in 2025.

Long-Term Outlook and Conclusion

Despite setbacks, Rector has not abandoned his long-term price targets. He anticipates XRP price could push toward $7, experience a pullback before reaching $10, and eventually move toward $15–$20. Timing has shifted because of the lawsuit, ETF delays, and legislative uncertainty.

TheCryptoBasic’s tweet clearly shows that XRP’s struggles in 2025 stem from legal, regulatory, and structural challenges rather than market disinterest. Investors and followers of Ripple token may find 2026 a more defining year as these roadblocks begin to clear.