Why Is XRP Dropping? Ripple-SEC Case Sparks Panic – Is a Rebound Coming?

By / / Crypto News, Daily News
Why Is XRP Dropping? Ripple-SEC Case Sparks Panic – Is a Rebound Coming?
Table Of Contents
  1. XRP Price Drop: Panic Selling or a Temporary Dip?
  2. What’s Causing XRP’s Decline?
  3. XRP Price Prediction: Will It Rebound or Fall Further?
  4. What’s Next for XRP?

XRP Price Drop: Panic Selling or a Temporary Dip?

XRP, one of the most traded altcoins, is under intense selling pressure. According to CoinMarketCap, its price recently dropped to $2.36, falling 3.42% in a day—a steeper decline than its 3% weekly drop. The sharp decline reflects rising investor fear and uncertainty.

What’s Causing XRP’s Decline?

Ripple’s SEC Case: Legal Uncertainty Continues

After four years of legal battles, Ripple’s CEO Brad Garlinghouse confirmed that the lawsuit with the U.S. Securities and Exchange Commission (SEC) is coming to an end. The SEC initially accused Ripple of raising $1.3 billion through an unregistered securities offering in 2020.

While Ripple secured a partial legal victory in 2023, the case has remained a major source of market uncertainty. Now, Ripple’s chief legal officer, Stuart Alderoty, announced that the SEC has dropped its appeal, and Ripple has also withdrawn its cross-appeal. The agreement includes:

  • The SEC keeping $50 million of the $125 million penalty
  • Ripple repaying the remaining amount to the team

This should be a positive development, but investors have reacted with panic selling, sending the price lower instead.

Whale Investors Are Sitting on the Sidelines

On-chain data from Ali Martinez suggests that wallets holding 1M to 10M XRP have been inactive between March 16 and March 24. These whales currently hold 5.78 billion to 5.83 billion XRP, showing little movement.

Typically, whale activity influences the market. Their inactivity suggests they are waiting for clearer signals, further adding to market hesitation.

XRP Price Prediction: Will It Rebound or Fall Further?

There’s a mix of optimism and caution in the market right now.

Potential Upside: Could an XRP ETF Boost Prices?

According to Polymarket, 84% of participants believe a Ripple ETF could be approved in 2025. If this happens, it could drive long-term institutional demand, boosting prices significantly. However, this remains speculative for now.

Short-Term Skepticism: Will XRP Stay Above $2.40?

A separate Polymarket wager suggests only 37% of traders believe XRP will stay above $2.40 by March 28, signaling a bearish short-term outlook.

Key Support and Resistance Levels

Based on TradingView and current market analysis:

  • If XRP holds above support and retests its triangle pattern, it could rebound to $2.48, and possibly $2.70.
  • If the decline continues, the next support level is around $2.23.
  • A breakdown below $2.23 could send it as low as $2.00.

What’s Next for XRP?

Right now, XRP is under selling pressure due to legal updates, mixed investor sentiment, and lack of whale activity. While a potential ETF approval and price recovery could bring long-term gains, short-term caution dominates the market.

As always, the next few days will be crucial in determining whether XRP stabilizes or faces further declines.

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