XRP Price Volatility Awaits SEC Decision

The upcoming April 3 meeting of the U.S. Securities and Exchange Commission (SEC) is a critical juncture for XRP, as investors and market participants await clarity on the digital asset's regulatory status. The outcome of this meeting could significantly influence XRP's price, which has been fluctuating around the $2 mark. The market's anticipation of the SEC's decision has led to heightened uncertainty, with some analysts suggesting that XRP's price could fall below $2 if the ruling is unfavorable.

XRP has been under intense scrutiny since December 2020, when the SEC filed a complaint against Ripple Labs for selling unregistered securities. This legal battle has raised doubts about XRP’s status and fate in the United States market. Most people think that the upcoming SEC meeting will either help decrease or increase such concerns. Market analysts caution that strict regulations may render XRP’s price volatile and may even drive it beneath the crucial $2 support level. Should the price go below $2, any such short-term recovery attempts may falter, thus triggering panic selling.

XRP has a market capitalization of $122.3 billion. Over the last day, it has remained 40% lower than its all-time high price of $3.40, moving between $2.05 and $2.50. The growing downward trend is an indication that XRP may experience a steeper decline, with no recovery signs yet. Bearish opinion is further reaffirmed by the price action. The Relative Strength Index (RSI) reading is at 39, illustrating poor momentum south of the central 50 threshold. Josh, an analyst with Crypto World, gave an update on the price action of XRP. In his view, XRP is witnessing a small bullish bounce. This is following an oversold reading in the RSI (Relative Strength Index), which stated that XRP was set for a relief bounce short-term. This bounce or sideways action is expected to last for the next day or two.

On March 19, Ripple CEO Brad Garlinghouse reported that the SEC intended to withdraw its appeal against the decision regarding XRP’s Programmatic Sales. But the SEC has yet to comment on its intentions regarding its potential appeal down the road. Ripple’s Chief Legal Officer, Stuart Alderoty, posted an announcement regarding the outline of a potential settlement drawn up on Judge Torres’ Final Judgment. Under this settlement proposal, the fine would be reduced to $50 million, from the SEC’s initial request for $2 billion and the before-talked $150 million.

Though the agenda of the SEC’s behind-closed-doors meeting has not yet been made public, speculations regarding its impact on XRP and the rest of the crypto market are plentiful. The meeting may touch upon regulatory enforcement efforts, ongoing lawsuits, or the designation of digital assets as US securities law. If the SEC gives clear instructions or suggests a decision in the case of Ripple, it might provide much-needed regulatory confidence. On the other hand, the lack of transparency might delay the uncertainty further, and that puts pressure on XRP’s price. Either way, the market participants expect major volatility while waiting for the next move from the SEC.

Despite the challenges faced by XRP, Ripple has made significant strides in advancing its RLUSD stablecoin. The transaction volume and adoption metrics for RLUSD have surpassed many popular stablecoins, positioning it as a viable alternative for institutional investors seeking stability in their trading solutions. RLUSD's success demonstrates Ripple's ability to adapt to market volatility and regulatory changes, even as XRP's price dynamics remain uncertain. The stablecoin's favorable regulatory status and growing market expansion highlight Ripple's strategic response to the evolving cryptocurrency landscape.