XRP Price Trends, SEC Decisions, and Institutional Adoption Driving Market Movements

The cryptocurrency market continues to be a focal point for investors, with XRP taking center stage following key regulatory developments and ETF filings.

The cryptocurrency market continues to be a focal point for investors, especially with XRP taking center stage following key regulatory developments and ETF filings.

Recent movements in the XRP price, institutional interest, and government policies have driven market activity, making it a crucial time to analyze what’s happening in the space.

Active Period for XRP-Spot ETFs Amid Growing Institutional Demand

On Tuesday, March 11, activity in the U.S. ETF space saw a significant boost as Franklin Templeton filed for an XRP-spot ETF, explained Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence. This move adds Franklin Templeton to the growing list of firms—21Shares, Bitwise Invest, Canary Funds, Grayscale, and WisdomTree—seeking to introduce XRP-spot ETFs.

Highlighting the surge in alt/meme-coin ETF filings, Balchunas noted, “This is the 64th alt/meme coin ETF filing that is now awaiting approval.”

This optimism stems from the Trump administration's pro-crypto stance and an anticipated regulatory overhaul, which are expected to facilitate the approval of altcoin ETFs.

However, the SEC's pending appeal in the Ripple case presents another layer of uncertainty. The agency filed its opening brief on January 15, challenging the Programmatic Sales of XRP ruling.

Moreover, legal experts believe that a resolution to the case could come sooner than expected, potentially impacting the SEC's decision on XRP-spot ETFs.

Highlighting this possibility, pro-crypto lawyer Fred Rispoli stated, “Some type of deal has been reached behind closed doors. Illogical not to think this based on all the other cases getting involved.”

An appeal withdrawal could remove legal hurdles and significantly impact the approval process for XRP-spot ETFs.

XRP Price Surges 3.74%

On March 12, XRP surged 3.74%, reversing a 5.33% drop from the previous day to close at $2.2099. Investor optimism regarding a potential SEC appeal withdrawal and XRP-spot ETF approval fueled the rally.

Key Factors Influencing XRP Price

U.S. Strategic Reserve Asset: Speculation about a multi-crypto reserve, including XRP, could boost investor sentiment.

SEC Appeal Strategy: If the SEC drops its appeal, XRP could surpass its all-time high of $3.55. Prolonged legal uncertainty, however, may push prices below $1.50.

ETF Developments: Approval of an XRP-spot ETF could drive institutional inflows, potentially pushing prices toward $5.

Macro Risks: Rising U.S. inflation and trade tensions could weigh on XRP, while easing concerns could support a recovery to $2.50.

Technical Analysis: XRP Defends Support

XRP continues to defend the psychological support level at $2.00, a key threshold tested multiple times in recent months. Each interaction with this level has triggered a significant buying reaction, signaling strong market support.

Investors are keenly watching this support zone as it could determine the direction of the next leg of the rally or slide in XRP prices.

Bitcoin Rallies 5.50% Amid Speculation of U.S. Government Buying

In other news, Bitcoin (BTC) also saw gains, rebounding 5.50% on March 11 to close at $82,946 after a five-day losing streak. The rally followed speculation that the U.S. government might be buying BTC as part of a strategic reserve initiative.

Senator Cynthia Lummis reintroduced the Bitcoin Act, proposing that the U.S. government acquire one million BTC over five years with a 20-year holding period.

Lummis highlighted the importance of this legislation in advancing the U.S.'s economic and technological leadership.

"By transforming the presidency’s visionary executive action into enduring law, we can ensure that our nation will harness the full potential of digital innovation," Lummis stated.

However, despite this optimism, BTC-spot ETFs reported continuing outflows, with $393.3 million exiting the market on March 10, marking a third consecutive session of declines.

Bitcoin Price Scenarios

Bearish: Rising trade tensions, opposition to the Bitcoin Act, and ETF outflows could drag BTC toward $70,000.

Bullish: Growing political support for the Bitcoin Act and renewed ETF inflows could push BTC toward $109,312.

The future of XRP is closely tied to two major developments.

First, the SEC’s decision on whether to proceed with its appeal against the Factor LLC ruling could have a pivotal impact.

If the SEC drops the appeal, it would clear the way for the approval of XRP-spot ETFs, setting off a chain reaction that could also boost the broader crypto market.

Second, the level of institutional adoption of XRP for cross-border transactions will be crucial for its long-term viability.