The Conclusion of the SEC vs. Ripple Legal Battle and Its Impact on XRP
The longstanding legal tussle between the Securities and Exchange Commission (SEC) and Ripple has seemingly reached its end. On March 19, Brad Garlinghouse announced that the SEC would abandon the case, triggering an instant surge in XRP’s market value.
XRP Market Capitalization Fluctuations
On the day of the announcement, XRP’s market cap soared from $132.66 billion to an impressive $148.63 billion, marking a 12.03% increase. However, this surge was short-lived as subsequent market downturns gained momentum.
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As of March 31, XRP’s market value had dwindled to $122.53 billion, reflecting a significant loss of $26.1 billion since the announcement.
Current XRP Price Trends
At the time of writing, XRP is trading at $2.10, demonstrating a 2.32% drop on the daily chart and resulting in a weekly decline of 14.60%. The digital asset is barely maintaining a positive year-to-date standing, essentially trading at levels similar to those seen on December 31, 2024.
XRP Loses Its Market Edge
XRP has been facing significant losses, primarily due to its previous performance as a market leader among major cryptocurrencies. While there are minor optimistic indicators, the overall picture remains bleak, suggesting bearish trends for the asset in the near future.
XRP Long/Short Ratio, Whale Liquidations, and Supply Dynamics
Despite the broader cryptocurrency market losing approximately $100 billion over the weekend, only 29.38% of XRP positions are shorts, according to Coinalyze data. The ratio of long to short positions has remained steady since March 28.
On the downside, on-chain analyst Ali Martinez reported that XRP whales, who hold over 100,000,000 tokens, offloaded around 1.12 billion XRP from March 28 to March 31. This development is compounded by Ripple’s scheduled release of 1 billion XRP on April 1 as part of its escrow agreement.
Ripple has already sold over 900 million XRP this year. Despite a portion of each release being re-locked, the continuation of sales in April could further pressure XRP prices downward.
Technical Analysts Are Divided on XRP’s Prospects
Technical experts offer differing perspectives on XRP’s future. Veteran trader Peter Brandt identified a head and shoulders pattern that could lead to a bearish trend down to $1. Conversely, Investing Scope highlighted a potential bullish pattern that could propel XRP to $6.50 by October, coinciding with possible ETF developments.
XRP ETF Approval: Will It Be a Game-Changer?
In February, the SEC acknowledged Grayscale’s application for a spot XRP fund, initiating a 45-day review period. The decision deadline, extended to May 21, may be further delayed until October. However, this potential catalyst is unlikely to impact short-term price movements due to current market volatility.
Ultimately, the overarching market dynamics continue to overshadow any single catalyst, maintaining XRP’s current downward trajectory. A change in these dynamics or a shift in market sentiment may be necessary for a reversal of the cryptocurrency’s losses.
Featured image via Shutterstock
