XRP Drops 8% as SEC Halts Altcoin ETF Approvals

XRP, the cryptocurrency associated with Ripple, experienced an 8% decline over the weekend, reaching $2.30 at the time of reporting on March 16. This drop came after a period of optimism fueled by Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The recent speculation that the SEC might classify XRP as a commodity had driven the price up for four consecutive days. However, a new announcement from the SEC pausing the approval process for altcoin ETFs triggered a downturn in the prices of top altcoins, including XRP.

Despite the recent price dip, derivatives market metrics suggest that bullish sentiment may still be prevalent. The trading volume for XRP has increased, indicating significant market activity. Additionally, the liquidation data shows that while long positions took losses during the weekend drop, short sellers are now at risk of a squeeze if the price stabilizes. The open interest has also dropped, suggesting that leveraged positions are unwinding, which could signal the end of the current correction and set the stage for a fresh uptrend if demand picks up.

Looking ahead, several key events could influence XRP's price movements. Ripple has filed for a trademark under the name “RIPPLE CUSTODY,” hinting at a potential new product focused on crypto storage solutions. This development could drive fresh investor interest. Additionally, the upcoming Federal Reserve decision on February 19 will play a crucial role in shaping broader market sentiment. Any hints of dovish monetary policy could spark increased risk appetite, potentially benefiting XRP and other digital assets. Furthermore, the SEC's temporary halt on altcoin ETF approvals is being closely watched, with industry analysts expecting continued discussions and potential developments in the coming weeks.

Technical indicators also suggest a potential rebound for XRP. The Keltner Channel (KC) midline at $2.35 is acting as immediate resistance, and a breakout above this level could open the door toward the upper KC band near $2.77. The Relative Strength Index (RSI) at 47.49 sits in neutral territory, signaling neither overbought nor oversold conditions. However, its recent bounce from 40 suggests growing bullish momentum. If XRP can maintain support near $2.30, the bulls could regain control, driving prices toward $2.50 in the short term and $2.80 in extension. On the flip side, failure to hold $2.30 could invite deeper retracements, potentially testing the lower KC band near $1.92. However, given XRP’s resilience in recent sessions, the momentum currently favors a bullish scenario.