Why XRP is Falling: Is the Crypto Market Turning Against Ripple?

Why XRP is Going Down Today: Will it Rise Again or Crash Further?

XRP, the popular crypto token linked to Ripple, has seen a significant drop recently. On March 29, according to CoinMarketCap, the token fell by 4.88% in just one day. Even though Ripple recently won part of its legal battle with the SEC, the altcoin continues to face selling pressure. This is currently priced at $2.14 with a market capitalization of $124.98 billion and 24-hour trading volume of $4.15 billion. In the last 7 days, XRP decreased by 10.62%, and in the last month, it is 3.52% down.

Source: CoinMarketCap

So, why is this occurring even after Ripple's victory in the courts? Let's explain it in simple terms.

XRP News: SEC Silence Fosters Community Uncertainty

Ripple won a partial victory in the Ripple vs SEC case, where the court held in favor of Ripple on the matter of Programmatic Sales of the altcoin.  But here's the problem: the SEC hasn’t officially withdrawn its appeal, and this silence is worrying the market.

Investors expected a clear announcement after the SEC’s closed-door meeting on Thursday, but nothing was said. This is in contrast to how quickly the SEC dropped its case against Coinbase, just a week after Coinbase CEO Brian Armstrong announced the case was over.

Ripple’s CEO Brad Garlinghouse also said the case is basically done, but until the SEC formally ends the appeal, doubts remain. As Eleanor Terrett, a journalist at CryptoAmerica, explained: “The SEC still needs to go to the judge and ask to lift the standard injunction. Only after that, they can vote on the appeal withdrawal.” This delay is adding uncertainty and pushing the XRP price down.

US Economic Data Showed Rising Inflation

It’s not just the legal confusion causing the price to fall. On March 28, the entire crypto market saw a dip after the US economic data showed rising inflation. Two major indicators shocked investors:

• The US Core PCE Price Index rose 2.8% in February, compared to 2.7% in January.

• The Michigan Consumer Inflation Expectations Index jumped to 5% in March, from 4.3% in February.

These numbers scared investors. On top of that, former President Donald Trump introduced a 25% tariff on car imports, which could make inflation worse. Investors are worried that if inflation continues to increase, the US Federal Reserve will increase interest rates again. 

XRP Price Prediction: Will it Rise Again? 

Technically speaking, crypto commentator Ali Martinez explained that a bearish "Head and Shoulders" pattern is emerging in the chart of the coin. It can slide as low as $1.20 if it breaks below the $2.05 level. However, if the coin surpasses $3.00, the pattern is negated and a bullish run may begin.

Source: TradingView Chart 

Renowned trader Peter Brandt also cautioned that if it doesn't cross the $3 barrier, it may plummet to $1.07. The coin is currently caught between support at $1.90 and resistance at $2.90. A breach below $1.90 can be a precursor to a bigger drop, but an increase above $2.90 can reboot the uptrend.

Source: X

Hope Persists: XRP ETF and Future Potential

There is still hope for XRP investors and users. Many are looking forward to a possible XRP ETF (Exchange-Traded Fund). If approved, this ETF would make it easier for people to invest in the crypto without directly buying the token. According to PolyMarket, there is an 85% chance that the ETF will get approved in 2025. If this happens, it could bring a lot of new investors to the project. Additionally, this may also surge the altcoin’s price to hit $3 in upcoming months. 

Conclusion

The decline in XRP price is due to a combination of things: legal uncertainty with the SEC, economic concerns, and negative technical indications. While some investors are concerned, others are optimistic regarding listings and ETF approvals in the future. As always, do your own research prior to investing in crypto.