Why Is XRP Falling Today: Is $1.5 Trillion Liquidity a key for Surge?

The XRP price is currently at $2.32, reflecting a 2.79% decline. Despite the drop, the market cap of XRP stands strong at $135.22 billion. Interestingly, the trading volume has surged by 41.64%, now sitting at $4.64 billion, indicating increased market activity.The broader crypto market has also seen a downturn, with the total market cap dipping by 1.08% to $2.72 trillion. Analysts at Coin Gabbar suggest that the overall bearish trend across the market has impacted XRP’s price movement.

Why Is XRP Falling Today? Key Reasons Behind the Drop

1. SEC vs. Ripple Lawsuit Update and case delay: The ongoing XRP Ripple lawsuit remains a major factor affecting investor confidence. With Ripple is required to file its appeal-related brief by April 16, uncertainty continues to loom over the asset’s regulatory status. Legal expert Jeremy Hogan hints at a possible settlement, but hurdles remain.

1. Global Crypto Market Downturn also contributes to the reason.  The crypto market is currently experiencing a downturn, impacting all major assets, including XRP crypto news updates. As Bitcoin and Ethereum like big cryptos are struggling to go up, other smaller cryptocurrencies like XRP are also facing the effect.

1. Macroeconomic & Regulatory Challenges: Regulatory uncertainty around XRP continues to affect its growth. While many investors are optimistic about a potential resolution, the lack of clear guidelines keeps institutional buyers hesitant.

Could XRP See a Price Surge? Strategic Reserve & Trump’s Crypto Push

One of the biggest developments in XRP crypto news is a proposal submitted to the SEC suggesting that XRP could unlock $1.5 trillion in liquidity for the U.S. economy. The proposal, put forward by Maximilian Staudinger, argues that integrating XRP into the financial system could free up capital currently tied up in Nostro accounts, which facilitate cross-border transactions. However, since the SEC regularly receives such proposals, there is no guarantee of action being taken.

• Institutional Adoption Possibilities: If XRP is officially recognized as a liquidity tool, it could drive demand and increase its value.

• XRP ETF Approval Hopes: Speculation around an XRP ETF approval is also fueling positive sentiment. Approval could open doors for institutional investments, further boosting XRP price prediction discussions.

According to Coin Gabbar analysts, regulatory clarity could be the key to XRP’s next major rally.

XRP Price Prediction & What’s Next

Many analysts believe XRP price could reach $5 to $10 in the short term, with long-term targets potentially hitting $50 or more if adoption and institutional demand grow. In the long run, if demand keeps growing, XRP might even reach $50 or more. Some believe it could hit $100, but for that to happen, there would need to be major changes in the market and clear rules from regulators.

A favorable court ruling could boost investor confidence, with XRP's future hinging on regulatory clarity, adoption, and market stability. Optimism grows, but caution is key.