XRP Drops 8% Amid SEC Uncertainty, Analysts Eye $15 Surge

XRP, the cryptocurrency associated with Ripple, has been experiencing significant price fluctuations, drawing the attention of investors and analysts alike. The token recently concluded a four-day winning streak with an 8% drop, trading at approximately $2.30 as of March 16, 2025. This price movement comes amidst ongoing legal battles between Ripple and the U.S. Securities and Exchange Commission (SEC). Despite these regulatory challenges, the crypto community remains optimistic about XRP’s potential.

Crypto analyst Ali Martinez has identified a technical pattern that could signal a major price movement for XRP. According to Martinez, XRP has formed a symmetrical triangle pattern since 2018 and has broken out of that pattern. This breakout might set the stage for a price surge in the near future, with some analysts predicting a potential rise to $15.

Another positive indicator for XRP is the growing number of wallets. The number of XRP wallets has reached an all-time high of 6.87 million, suggesting more people are engaging with the token. This increase in wallet numbers indicates rising interest and potential upward momentum for XRP.

Ripple’s recent transfer of 200 million XRP, worth approximately $457 million, has added to the speculation about XRP’s future price movements. This large transfer has raised questions about Ripple’s strategic preparations and potential market impact.

The ongoing SEC lawsuit continues to be a key factor in XRP’s price trajectory. Recent reports suggest the SEC might be considering classifying XRP as a commodity as part of settlement negotiations. The SEC is reportedly using Ethereum’s current regulatory treatment as a benchmark in its deliberations. If XRP receives classification as a commodity rather than a security, it could remove regulatory barriers and potentially open the door for ETF approval. This reclassification could attract institutional investors and drive demand higher.

However, the SEC recently announced a pause in the approval process for altcoin ETFs. This announcement appears to have contributed to the recent 8% price drop, affecting XRP and other cryptocurrencies with ETF filings in progress. Despite the price dip, derivatives market metrics indicate bullish sentiment may still be present. The 24-hour liquidation data shows $11.58 million, with $8.98 million in long positions and $2.60 million in short positions. This imbalance suggests short sellers might face a squeeze if prices stabilize, potentially leading to a rebound.

XRP’s open interest has dropped by 6.70% to $3.14 billion, indicating that leveraged positions are unwinding. Some analysts view this as a potential sign that the current correction might be nearing its end. Technical indicators show the Relative Strength Index (RSI) at 47.49, placing it in neutral territory. However, its recent bounce from 40 suggests growing bullish momentum. A sustained RSI climb above 50 would support the case for continued upward movement.

Ripple has reportedly filed for a trademark under the name “RIPPLE CUSTODY,” hinting at a potential new product focused on crypto storage solutions. This development could generate fresh investor interest in the coming week. The upcoming Federal Reserve meeting on February 19 will likely influence broader market sentiment. Any indication of dovish monetary policy could increase risk appetite, potentially benefiting XRP and other digital assets.

If XRP maintains support near $2.30, bulls could regain control, potentially driving prices toward $2.50 in the short term and $2.80 beyond that. However, failure to hold this support level could lead to deeper drops, possibly testing the $1.92 level. Key resistance levels to watch include $2.57 and $2.92. Breaking above these levels could open the path to higher targets, while falling below support at $2.30 might trigger further selling pressure.