XRP Price Drops 8% as Weekend Trading Sessions Mark an End to Recent Upward Momentum

The price of XRP has taken a downturn, falling 8% during the weekend trading sessions. The digital asset now trades around $2.30

The price of XRP has fallen 8% during the weekend trading sessions to begin the week.

The digital asset now trades around $2.30 as of March 16, marking an end to its recent upward momentum.

This price drop comes after a strong performance last week. XRP had enjoyed four consecutive days of price increases before the weekend decline.

The recent price action has been heavily influenced by developments in Ripple’s ongoing case with the Securities and Exchange Commission (SEC). Market sentiment had improved following reports about potential regulatory shifts.

According to reports from FOX analysts on Thursday, the SEC is considering the possibility of classifying XRP as a commodity. This would align with how Ethereum is currently treated by regulators.

Such a change could prove highly beneficial for XRP’s future prospects. It might clear the path for ETF approval and potentially allow the token to be included in strategic reserves.

However, investor enthusiasm was dampened by Friday’s announcement from the SEC. The regulatory body stated it would temporarily pause the approval process for altcoin ETFs.

This regulatory shift triggered selling pressure across major altcoins. XRP fell from $2.49 on Friday to its current level of $2.30.

Despite this correction, several indicators suggest the downtrend may be temporary.

Data from Coinglass shows XRP’s trading volume has actually increased by 12.11% to $6.05 billion.

The liquidation data reveals $11.58 million in positions were closed in the last 24 hours. Long positions accounted for $8.98 million of this total, while short positions made up $2.60 million.

Open interest has decreased 6.70% to $3.14 billion, suggesting leveraged positions are being reduced. This could indicate the correction phase is nearing completion.

Several key developments this week will be monitored by participants.

Ripple has filed for a new trademark called “RIPPLE CUSTODY.” This filing points to a potential expansion into crypto storage solutions.

Analysts believe this move could generate fresh interest from investors in the days ahead.

The Federal Reserve meeting scheduled for February 19 will also likely impact market sentiment. Any signals of looser monetary policy could boost risk assets including cryptocurrencies.

Investors will also be watching for any further updates regarding altcoin ETF applications. Despite the current pause, industry experts expect ongoing discussions with regulators.

From a technical perspective, XRP currently faces immediate resistance at the Keltner Channel midline of $2.35. A successful break above this level could target the upper band at $2.77.

The Relative Strength Index (RSI) reads 47.49, placing it in neutral territory. However, its recent bounce from 40 might indicate building bullish momentum.

Volume analysis shows healthy buying interest despite the price decline. Previous bullish sessions recorded volume exceeding 1.25 billion, suggesting continued market engagement.

If XRP can maintain support at the current $2.30 level, analysts believe a recovery toward $2.50 is possible in the near term. Some even project a move toward $2.80 if momentum builds.

Conversely, failing to hold the $2.30 support could lead to further declines. The lower Keltner Channel band near $1.92 would become the next support target in this scenario.

Besides chart patterns, other factors may influence XRP’s price trajectory. South Korean whale wallets have recently acquired $700 million worth of the cryptocurrency.

Options data from Deribit shows traders are positioning for higher prices. The most popular call option targets a $5 price for XRP this year.

JPMorgan analysts have estimated that these investment vehicles could attract around $8 billion during their first year.