XRP price has tumbled 8% over the weekend, hitting $2.3 at press time on March 16. As Ripple advances its legal battle and files new trademarks, how will XRP markets react in the week ahead?

Ripple (XRP) Tumbles 8% to End 4-Day Winning Streak

Ripple (XRP) emerged as one of the top-performing assets last week, fueled by renewed optimism in Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

On Thursday, FOX analysts reported that the SEC is considering classifying XRP as a commodity as part of ongoing settlement negotiations to conclude the long-running case against Ripple. The SEC is reportedly using Ethereum’s current regulatory treatment as a benchmark in its deliberations.

If this reclassification materialises, it could significantly enhance XRP’s prospects for ETF approval and potential inclusion in a strategic crypto reserve. However, after four consecutive days of green candles for Ripple price, driven by the SEC reclassification speculations, another major regulatory headline appears to have cut the XRP price rally short.

Why Is XRP Price Going Down Today?

After a four-day winning streak fueled by speculation that the SEC may classify XRP as a commodity, another major SEC announcement appears to have halted the rally.

On Friday, March 14, the SEC announced its decision to pause the approval process for altcoin ETFs, triggering a downturn in the prices of top altcoins over the weekend, particularly those with ETF filings in progress.

This development partly explains why XRP’s price has now plunged 8%, dropping from its Friday peak of $2.49 to $2.29 as of March 16.

Derivatives Market Analysis Flashing Early Rebound Signals

Despite the recent price dip, XRP’s derivatives market metrics indicate that bullish sentiment may still be in play. First, the latest Coinglass data shows, XRP’s trading volume has increased by 12.11%, reaching $6.05 billion. This suggests that despite the price pullback, there is still significant market activity.

Also, the 24-hour liquidation data (Rekt) stands at $11.58 million, with $8.98 million in long positions and $2.60 million in short positions. This suggests that while longs took losses amid the weekend drop, short sellers are now at risk of a squeeze if the price stabilizes.

XRP’s open interest has dropped by 6.70% to $3.14 billion, indicating that leveraged positions are unwinding. This could signal the end of the current correction, setting the stage for a fresh uptrend if demand picks up.

With strong derivatives volume and long positions outweighing shorts, the market appears to be positioning for a rebound. If broader sentiment improves and regulatory fears subside, XRP could regain momentum in the coming days.

3 Key Events XRP Traders Must Watch in the Week Ahead

XRP’s correction phase appears temporary, with derivatives market indicators pointing to sustained bullish momentum. Here are key factors influencing price movements this week:

1. Ripple Files Trademark for New Crypto Wallet Application

According to recent media posts, Ripple has reportedly filed for a trademark under the name “RIPPLE CUSTODY,” which hints at a potential new product focused on crypto storage solutions.

This development could drive fresh investor interest in the week ahead. For optimistic market watchers, Ripple is now in pole position to leverage international partnerships, and friendlier regulators to ship fresh innovative products that had been hampered during years of long litigation.

2. U.S. Federal Reserve Decision on February 19

The upcoming Fed meeting 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.

3. SEC Pauses Altcoin ETF Approvals, but Market Watches for Further Developments

The SEC has temporarily halted decisions on altcoin ETF applications, but industry analysts expect continued discussions. Strategic investors will keenly watch out for Soundbites, and insights from key ETF sponsors in the coming weeks.

XRP Price Forecast: Bulls Eye $2.80 Rebound

XRP price forecast suggests a broader crypto market recovery is underway, setting the stage for XRP’s next move. The XRP/USDT daily chart presents a mix of consolidation and volatility, but key technical indicators hint at a potential rebound. 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. A sustained RSI climb above 50 would reinforce the case for continued upside.

Despite the recent 8.38% dip in a single session, volume data shows a healthy recovery, with prior bullish days recording over 1.25 billion in volume—a sign that buyers remain engaged. 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

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ibrahim

Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.