Why XRP Is Down and Will it Rise Again?

XRP News Today: Why Is $XRP Dropping? Reasons and Price Prediction

At the time of writing, XRP price is trading at $2.59, experiencing an intraday drop of 3.28%. The market capitalization stands at $150.42 billion, while the 24-hour trading volume is recorded at $4.78 billion. Despite a weekly gain of 4.65%, the recent decline has raised concerns among investors.

Source: CoinMarketCap

Several factors are contributing to why XRP is going down today. A combination of technical indicators, regulatory concerns, and critical investor sentiment is playing a major role in XRP’s short-term downturn.

Why XRP Is Dropping: Key Reasons

1. Ali Martinez’s Technical Analysis Predicts Pullback

Crypto analyst Ali Martinez identified a potential pullback in XRP’s price trend. Based on the TD Sequential indicator, a sell signal appeared on the latest daily XRP/USDT Binance chart, marked by a red “9”. This typically signals trend exhaustion, hinting at a possible short-term reversal.

Source: X

• XRP surged past $2.70, testing a resistance level at $2.85, before facing rejection.

• The latest bearish candle suggests potential downside movement.

• If the TD Sequential signal holds, XRP might retrace to its support level around $2.60 or lower.

This technical outlook aligns with why XRP is crashing, as traders anticipate a correction following recent gains.

2. SEC’s Closed Meeting on February 20 Raises Uncertainty

The U.S. Securities and Exchange Commission (SEC) has scheduled a closed-door meeting for February 20, leading to uncertainty in the XRP crypto news landscape.

The meeting agenda includes:

• Institution and settlement of injunctive actions

• Institution and settlement of administrative proceedings

• Resolution of litigation claims

• Other examination and enforcement matters

Investors speculate that the SEC may discuss its appeal strategy against Ripple, impacting the XRP court case update today. Fear of unfavorable developments in the XRP lawsuit news has contributed to the recent market pullback.

3. XRP Criticized as a ‘Centralized Controlled Security’

Jason Calacanis, a well-known angel investor, recently called XRP a centralized controlled security. He believes that an XRP spot ETF approval could destabilize the market. According to him:

• XRP is unlike Bitcoin and should be accessible only to sophisticated investors.

• XRP ETFs could lead to startups dumping large amounts of tokens, creating instability.

This negative sentiment has further added to why XRP is going down, with investors choosing to stay cautious.

XRP Price Prediction: What’s Next?

Despite the current downturn, the XRP news today also includes some optimistic developments. The SEC has officially acknowledged Grayscale Investments’ application for an XRP spot ETF, starting a 240-day review period.

• Short-Term Targets: Technical analysis suggests XRP could reach $4.06 to $5.28 if bullish momentum resumes.

• Long-Term Target: The most ambitious projection places XRP at $6.5 by 2030, provided Ripple adoption increases and the overall crypto market strengthens.

SEC approval for XRP ETF could boost its legitimacy, liquidity, and institutional interest, potentially triggering a bullish rally. However, regulatory uncertainty and market sentiment remain key factors influencing XRP price in the near term.