XRP Price Has Tumbled 8% Over the Weekend, Hitting $2.3 at Press Time

Ripple (XRP) emerged as one of the top-performing assets last week, fueled by renewed optimism in Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

The price of XRP has tumbled by 8% over the weekend, hitting $2.3 at press time on March 16. As Ripple advances its legal battle and files new trademarks, how will XRP markets react in the week ahead?

Ripple (XRP) emerged as one of the top-performing assets last week, fueled by renewed optimism in Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

On Thursday, FOX analysts reported that the SEC is considering classifying XRP as a commodity as part of ongoing settlement negotiations to conclude the long-running case against Ripple. The SEC is reportedly using Ethereum’s current regulatory treatment as a benchmark in its deliberations.

If this reclassification materialises, it could significantly enhance the prospects for XRP’s ETF approval and potential inclusion in a strategic crypto reserve. However, after four consecutive days of green candles for Ripple price, driven by the SEC reclassification speculations, another major regulatory headline appears to have cut the XRP price rally short.

Why Is XRP Price Going Down Today?

After a four-day winning streak fueled by speculation that the SEC may classify XRP as a commodity, another major SEC announcement appears to have halted the rally.

On Friday, March 14, the SEC announced its decision to pause the approval process for altcoin ETFs, triggering a downturn in the prices of top altcoins over the weekend, particularly those with ETF filings in progress.

This development partly explains why XRP’s price has now plunged by 8%, dropping from its Friday peak of $2.49 to $2.29.

Derivatives Market Analysis Flashing Early Rebound Signals

Despite the recent price dip, XRP’s derivatives market metrics indicate that bullish sentiment may still be in play. First, the latest Coinglass data shows, XRP’s trading volume has increased by 12.11%, reaching $6.05 billion. This suggests that despite the price pullback, there is still significant market activity.

Also, the 24-hour liquidation data (Rekt) stands at $11.58 million, with $8.98 million in long positions and $2.60 million in short positions. This suggests that while longs took losses amid the weekend drop, short sellers are now at risk of a squeeze if the price stabilizes.

XRP’s open interest has dropped by 6.70% to $3.14 billion, indicating that leveraged positions are unwinding. This could signal the end of the current correction, setting the stage for a fresh uptrend if demand picks up.

With strong derivatives volume and long positions outpacing shorts, the market appears to be positioning for a rebound. If broader sentiment improves and regulatory fears subside, XRP could regain momentum in the coming days.

3 Key Events XRP Traders Must Watch in the Week Ahead

XRP’s correction phase appears temporary, with derivatives market indicators pointing to sustained bullish momentum. Here are key factors influencing price movements this week:

1. Ripple Files Trademark for New Crypto Wallet Application

According to recent reports, Ripple has filed for a trademark. The application is for the name “RIPPLE CUSTODY” and class no. 9, which pertains to software, hardware, and electronic devices.

This trademark filing could be a sign that Ripple is planning to launch a new product or service in the cryptocurrency wallet space. It is also possible that the company is expanding its existing product offerings.

Earlier this year, Ripple announced that it would be expanding its presence in India with the launch of a new payments innovation hub in Hyderabad.

This new initiative is part of Ripple’s broader strategy to deepen its footprint in key markets around the world.

As part of its expansion plans, Ripple is also investing heavily in research and development to stay at the forefront of technological advancements within the cryptocurrency industry.

Recently, Ripple Labs disclosed its intention to pursue new ventures in the fields of Web3 and the metaverse, signaling the company’s broad scope of activities.

Those at Connected Culture, Inc., which manages Smashbox and BezzerWizard, are preparing to launch a new product in the music industry.

This could be a key event for XRP traders to watch, as it could lead to a surge in interest in Ripple’s products and services. It could also put traders in the mood to hunt for new buying opportunities.

2. U.S. Federal Reserve Decision on February 19

The upcoming Fed meeting will play a crucial role in shaping broader market sentiment. Any hints of a more dovish monetary policy could spark increased risk appetite, potentially benefiting XRP and other digital assets. Conversely, a hawkish tone from the Fed could put pressure on crypto prices.

3. SEC Pauses Altcoin ETF Approvals, but Market Awaits Further Developments

The SEC has reportedly placed a temporary hold on making decisions on altcoin ETFs, and industry analysts anticipate that these discussions will continue. Strategic investors will be attentive