As of now, XRP price is trading at $2.12, showing a 3.08% drop in the last 24 hours. It has a market cap of $123.45 billion and a 24-hour trading volume of $3.86 billion, according to CoinMarketCap. In the past 7 days, the altcoin has dropped 13.81%, and over the past month, it’s down 17.74%.
Source: CoinMarketCap
Most investors and crypto users are worried, asking why XRP is dropping today. Let's examine the primary reasons for the dip and what can be expected next.
Ripple SEC Case News: The historic Ripple lawsuit is one of the largest reasons for the present fall. On March 19, Ripple CEO Brad Garlinghouse announced that the SEC will withdraw its appeal, stating that it is a huge victory for Ripple and the cryptocurrency space. Yet, the SEC has not officially stated anything as of now. The decision will be finalized on April 3, and this uncertainty is giving rise to fear and tension within the community.
Trump Liberation Day Announcement: On April 2, the U.S. President is likely to announce a 20% tax on imported products under the Trump Tariff Plan. This may have an effect on inflation and interest rates, both of which influence the crypto market. If inflation rises, crypto interest rates may increase too—creating pressure on altcoins.
Technical Analysis Warning: As per Ali Martinez, the coin’s MVRV Ratio (a key metric) dropped below its 200-day moving average at 122.02% on March 31. This shows a possible change in trend. It peaked at 480% last year but now stands at 88.14%. This indicates investors are noticing decreasing profits, which can cause more selling.
Source: X
Ripple Sec News: If the government regulatory eventually closes the case, the price of XRP may recover very well. Then the coin may attempt to break its next resistance at $2.19. If the momentum holds, it may even attempt to reach or surpass its all-time high of $3.84. However, if the SEC surprises the market with a disheartening ruling, the token may decline to about $1.90.
Ripple ETF Hopes: Another reason to be optimistic is the potential approval of a Ripple ETF. Based on Polymarket statistics, there's a 73% probability the ETF will get approved by the end of 2025. This has made the community of the platform hopeful, as listings for ETFs tend to introduce new investments into a project.
Source: Polymarket
While the altcoin is under pressure owing to regulatory and economic uncertainty, it's significant to observe the SEC announcement in detail. In case everything goes well, this cryptocurrency may turn bullish once again.
Investors should watch the SEC’s April 3 decision closely, as a favorable outcome could push XRP above $2.19. If the case drags on, further declines to $1.90 are possible. Long-term optimism remains with ETF prospects, but short-term caution is advised. Consider risk management before investing. However, before making any investment, carry out your own research to avoid major losses.
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