XRP in danger despite positive regulatory shift

XRP retreats just as its status reaches a crucial milestone. The asset, now classified as a commodity, may have attracted renewed interest. It is not so. The market remains under pressure, caught between technical weakness and macroeconomic tensions. This discrepancy between regulatory progress and price response reveals a still hesitant market.

XRP Under Pressure: Fragile Technical Signals and Continued Selling Pressure

XRP is currently trading in the low zone after a turbulent week marked by a rejection from higher levels as Ripple prepares for its fourth massive token unlock. The token, which was priced at $1.39993 on March 22, is down 2.95% in 24 hours after briefly climbing to $1.60 before a correction.

The market remains under pressure, the price close to the session is around $1,385. Short-term analysis reveals a loss of momentum with a weakened market structure. So XRP “remains positioned near the lower Bollinger band”indicating continued downward pressure as it trades below its key moving averages, limiting rebound attempts.

Several technical indicators confirm this fragile dynamic:

• The RSI is around 35.90, near the oversold area, signaling weakened momentum;
• MACD remains negative, with values ​​below the signal line, confirming a bearish trend;
• The price is trading below the 14- and 21-week moving averages, which act as resistance;
• Bollinger Bands show the price near the bottom, around $1.37982;
• The $1.39-$1.40 zone represents key support to prevent the decline from extending.

In this context, the market remains hesitant. A hold above this support could allow a return to $1.50, while a break would expose XRP to a decline towards $1.30.

Between Regulatory Progress and Institutional Inertia: The Market Is Suspended

However, XRP is undergoing a structuring phase at the regulatory level. On March 17, the SEC and CFTC formalized their classification as commodities, a change that ends a long period of legal uncertainty.

This development now places the asset in a category comparable to commodities such as gold or oil, theoretically opening the door to wider adoption by financial institutions.

Despite this strong signal, the market remains cautious. Institutional investors have yet to initiate massive flows, slowed by a global environment marked by renewed risk aversion. Escalating geopolitical tensions, particularly around the Strait of Hormuz, have prompted a flight to safer assets, limiting the immediate impact of this regulatory recognition.

This caution is also reflected in the gap between acceptance and appreciation. Evernorth CEO Asheesh Birla sums up the situation and explains “XRP is not used as a large-scale liquidity bridge yet”highlighting that institutional use remains insufficient to support demand sustainably.

That clarifies “The version of XRP that we believe is capable of generating demand for sustainable use is where banks and businesses use it as working capital”. Despite positive signals, such as the $1.3 billion net inflow recorded by the XRP ETF in just 50 days or the 388 million XRP held by Evernorth, institutional adoption is still progressing at a limited pace. Birla himself acknowledges: “We are seeing signs of growth in institutional use. But not as fast as retail users”.

XRP is evolving in a waiting phase, between regulatory progress and investor caution. As long as institutional adoption remains limited and the macroeconomic context weighs on markets, XRP price is struggling to reflect its fundamentals. Next steps will depend on the market’s ability to translate this legal framework into concrete use.

DISCLAIMER OF LIABILITY

The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.