XRP saw a bit of a setback over the weekend, bottoming 8% to $2.30 after what had been a solid 4-day winning streak. The dip comes despite the previous expectations surrounding Ripple’s ongoing legal saga with the U.S. Securities and Exchange Commission (SEC). It seems like one step forward, two steps back for XRP, but there’s still hope on the horizon.
SEC’s Pause on ETF Approvals Hits XRP
So, what caused the drop? It wasn’t just a random market pullback—on March 14, the SEC threw a curveball by announcing that it would pause the approval process for altcoin ETFs. This includes XRP, of course, as many had hoped a shift in regulatory sentiment could lead to ETF approval for the coin. When the SEC hit the pause button, the market took a hit, with XRP dropping from a peak of $2.49 on March 14 to $2.29 by March 16. The timing couldn’t have been worse, as XRP’s strong performance seemed to be halted by the news.
XRP had been riding high on reports from FOX analysts that the SEC might be considering classifying it as a commodity, just like Ethereum (ETH). The theory was that this change could lead to a regulatory framework more favorable for XRP, possibly paving the way for ETF approval or even a role in crypto reserves. But with the SEC’s latest move, any hopes of immediate gains from that news were dashed—at least for now.
Ripple’s New Custody Trademark Adds to the Buzz
Interestingly, Ripple has filed for a new trademark—“RIPPLE CUSTODY.” This could be a sign that the company is headed towards crypto storage solutions. This is a huge development, especially if Ripple plans to provide secure ways for whales to store crypto. It could definitely spark renewed interest in XRP, especially if the custody solution gets off the ground.
XRP Bulls Hang Tight with Solid Market Data
Despite the dip, it’s not all doom and gloom for XRP holders. In fact, derivatives data paints a bullish picture for the cryptocurrency. XRP’s trading volume increased by 12.22% to a whopping $6.10 billion, according to Coinglass. Additionally, $11.58 million in positions were closed, with most of those being long positions.
XRP price volume, March 17. Source: Coinglass
The fact that open interest dropped by 6.70% to $3.14 billion could be a sign that leveraged positions are unwinding, potentially signaling that the worst of the price correction is over.
The Broader Picture: XRP ETFs and Market Sentiment
XRP ETFs remain an area of intense interest. According to JPMorgan, these funds could attract $8 billion in inflows within their first year. Derivatives markets are also showing significant interest, with the popular bet being a $5 XRP by 2025. While this seems optimistic, it’s clear that there’s a solid amount of betting happening in favor of XRP’s continued growth.
Still, not everyone’s sold on XRP’s path forward. A lot of the early hype surrounding government cryptocurrency stockpiling has fizzled out, which may have played a part in this sentiment shift.
