XRP (XRP<\/a>) extended its downtrend on Feb. 28, down 9% in the last 24 hours to trade at $2.05.<\/p>\n What to know:<\/p>\n XRP trades in a third bearish session that has seen it lose a key support level at $2.20.<\/p>\n<\/li>\n The global crypto market capitalization has also dropped 6.6% to $2.66 trillion at the time of publication.<\/p>\n<\/li>\n<\/ul>\n XRP\/USD four-hour price chart. Source: <\/em>TradingView<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Nearly $25.5 million worth of XRP futures positions have been liquidated over the last 24 hours, with long liquidations amounting to $22.2 million.<\/p>\n<\/li>\n The SEC\u2019s delay to drop Ripple\u2019s case is adding uncertainty to the XRP market.<\/p>\n<\/li>\n<\/ul>\n XRP has witnessed heavy losses since the beginning of the month, dropping nearly 35% as the Ripple community members remain hopeful that the US Securities and Exchange Commission (SEC) will drop its multi-year lawsuit against Ripple.<\/p>\n What to know:<\/p>\n Initiated in December 2020, the case saw a partial victory for Ripple in August 2024, when a federal judge fined the company $125 million<\/a>\u2014far less than the SEC\u2019s $2 billion demand\u2014for unregistered securities sales to institutional investors.\u00a0<\/p>\n<\/li>\n The ruling affirmed that XRP itself is not a security<\/a> for retail sales.<\/p>\n<\/li>\n However, the SEC appealed in October 2024<\/a>, challenging this distinction.\u00a0<\/p>\n<\/li>\n Over the past week, the new SEC administration has scaled down its enforcement actions against crypto companies.<\/p>\n<\/li>\n The agency has recently closed several legal cases, including those against Coinsase<\/a>, Consensys<\/a>, Robinhood, Uniswap<\/a>, and Gemini<\/a>.\u00a0<\/p>\n<\/li>\n<\/ul>\n \ud83d\udea8NEW: Enforcement investigations and actions brought by the @SECGov<\/a> under @GenslerArchive<\/a> are dropping like flies.@RobinhoodApp<\/a> Monday@Uniswap<\/a> Tuesday@Gemini<\/a> Wednesday<\/p>\n Who Thursday?<\/p>\n Stay tuned. \ud83d\udcfb https:\/\/t.co\/ePI04YNIbk<\/a><\/p>\n \u2014 Eleanor Terrett (@EleanorTerrett) February 26, 2025<\/a><\/p><\/blockquote>\n Despite this, the new administration has not relented on Ripple, and the appeal filed by the SEC is still pending.\u00a0<\/p>\n Related: <\/strong><\/em>XRP Ledger unveils institutional DeFi roadmap<\/strong><\/em><\/a><\/p>\n The case, therefore, still casts a shadow over XRP\u2019s price, adding fuel to the current headwinds.<\/p>\n XRP\u2019s drop on Feb. 28 is accompanied by significant liquidations<\/a> in the derivatives market, signaling strong bearish pressure.<\/p>\n Key points:<\/p>\n Over $22.30 million worth of long XRP positions have been liquidated over the last 24 hours, compared to $3.2 million in short liquidations.<\/p>\n<\/li>\n Bullish traders are forced to sell their positions when long positions are liquidated.<\/p>\n<\/li>\n<\/ul>\n Total XRP liquidations. Source: CoinGlass<\/em><\/p>\n<\/figcaption><\/figure>\n The scale of these liquidations mirrors Feb. 3, when $74.5 million in long XRP positions were wiped out, accompanying a 36% drop in price from $2.78 to $1.76.<\/p>\n<\/li>\n XRP\u2019s open interest<\/a> (OI) has also dropped 30% in the past seven days, signaling a decline in trader participation.<\/p>\n<\/li>\n<\/ul>\n XRP futures open interest. Source: CoinGlass<\/em><\/p>\n<\/figcaption><\/figure>\n Although the funding rate flipped positive on Feb. 27, it has dropped from 0.0079% to 0.0032% over the last 24 hours, suggesting a weaker bullish conviction<\/a>.<\/p>\n<\/li>\n<\/ul>\n XRP OI-weighted funding rate. Source: CoinGlass<\/em><\/p>\n<\/figcaption><\/figure>\n The drop in XRP price today is part of a correction that began on Jan. 16 after the relative strength index<\/a> (RSI) painted massively overbought conditions following its run to seven-year highs at $3.40.<\/p>\n Key levels to watch:<\/p>\n XRP bulls are focused on defending the psychological support at $2.00, embraced by the lower boundary of the descending parallel channel.<\/p>\n<\/li>\n XRP could extend the decline to the recent range low at $1.76 (formed on Feb. 3) and the psychological level at $1.50, where the 200-day SMA currently sits.<\/p>\n<\/li>\n<\/ul>\n XRP\/USD daily chart. Source: Cointelegraph\/<\/em>TradingView<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n\n
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SEC delays dropping Ripple case<\/strong><\/h2>\n
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Over $22 million in long XRP positions liquidated<\/strong><\/h2>\n
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XRP price needs to hold above $2.00 <\/strong><\/h2>\n
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