Why Is XRP Dropping? Key Factors Behind the Price Decline
At the time of writing, XRP is trading at $2.67, reflecting a 3.57% drop in the last 24 hours. The token’s market cap stands at $154.39 billion, with a 24-hour trading volume of $4.15 billion. Despite the downturn, XRP has surged 9.38% over the past week, demonstrating its ongoing market interest.
However, XRP is still 31.06% below its all-time high of $3.84, recorded on January 4, 2018. Its lowest price ever was $0.002802 on July 7, 2014.
What’s Causing the XRP Price Drop?
1. SEC Closed Meeting on February 20
The U.S. Securities and Exchange Commission (SEC) has scheduled a closed-door meeting on February 20, sparking uncertainty among investors. The agenda includes discussions on:
- Legal actions and settlements
- Administrative proceedings
- Ongoing litigation matters
Speculation is rising that the SEC might discuss its appeal strategy against Ripple, making investors cautious and leading to XRP’s recent price decline.
2. XRP Criticism as a ‘Centralized Security’
Investor Jason Calacanis recently called XRP a “centralized security”, raising concerns over its regulatory classification. He warned that an XRP-based ETF could disrupt securities laws and introduce instability to the crypto market. His main arguments include:
- XRP operates differently from Bitcoin, making it unsuitable for retail investors.
- Potential XRP ETF approval could trigger massive token sell-offs from early investors and institutions.
This skepticism has led to increased sell pressure, contributing to XRP’s current price dip.
Can XRP Reach $5? Price Predictions & Key Catalysts
Despite its recent pullback1, analysts remain bullish on XRP, pointing to several positive indicators:
1. Cup-and-Handle Formation Suggests a Potential Breakout
Crypto analyst Ali Martinez has identified a cup-and-handle pattern on the XRP chart, which typically signals a bullish breakout. If this pattern plays out, XRP could surge to $3.35 in the near term.
2. SEC Ruling: XRP Is Not a Security
The SEC has officially stated that XRP is not classified as a security, easing regulatory concerns. This ruling opens the door for institutional investments and potential ETF approvals, boosting long-term price prospects.
3. XRP ETF Approval Could Drive Prices Higher
Crypto analyst JackTheRippler predicts that XRP could hit $5 soon, fueled by:
- Growing institutional adoption
- A potential XRP-based ETF listing
- Recognition from global financial institutions, including the European Central Bank
Ripple vs SEC Lawsuit: What’s Next?
The ongoing SEC vs Ripple lawsuit remains a major factor affecting XRP’s price. If the SEC withdraws its appeal, XRP could break past its all-time high of $3.84. However, if the legal battle intensifies, XRP may drop below $1.50.
While XRP news and SEC updates create short-term volatility, the token’s long-term outlook remains promising. Investors should closely monitor regulatory decisions and Ripple’s strategic moves to assess XRP’s future price trajectory.
Final Thoughts: Will XRP Be the Next Big Surge?
XRP’s price action remains highly dynamic, driven by regulatory news, ETF speculation, and technical patterns. While short-term corrections are expected, its strong fundamentals and growing adoption could push it toward new highs in 2025.
Stay updated on XRP price predictions, Ripple news, and SEC developments to make informed investment decisions!
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