Why is XRP ( $1.11 ) price down today?

XRP ( $1.11 ) ( XRP ( $1.11 ) ) extended its downtrend on Feb. 28, down 9% in the last 24 hours to trade at $2.05.

What to know:

• XRP ( $1.11 ) trades in a third bearish session that has seen it lose a key support level at $2.20.

• The global crypto market capitalization has also dropped 6.6% to $2.66 trillion at the time of publication.

• Nearly $25.5 million worth of XRP ( $1.11 ) futures positions have been liquidated over the last 24 hours, with long liquidations amounting to $22.2 million.

• The SEC’s delay to drop Ripple’s case is adding uncertainty to the XRP ( $1.11 ) market.

SEC delays dropping Ripple case

XRP ( $1.11 ) 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.

What to know:

• Initiated in December 2020, the case saw a partial victory for Ripple in August 2024, when a federal judge fined the company $125 million—far less than the SEC’s $2 billion demand—for unregistered securities sales to institutional investors. 

• The ruling affirmed that XRP ( $1.11 ) itself is not a security for retail sales.

• However, the SEC appealed in October 2024, challenging this distinction. 

• Over the past week, the new SEC administration has scaled down its enforcement actions against crypto companies.

• The agency has recently closed several legal cases, including those against Coinsase, Consensys, Robinhood, Uniswap ( $3.89 ) , and Gemini. 

🚨NEW: Enforcement investigations and actions brought by the @SECGov under @GenslerArchive are dropping like flies.@RobinhoodApp Monday $3.89 ) ?ref_src=twsrc%5Etfw">@ Uniswap ( $3.89 ) Tuesday@Gemini Wednesday

Who Thursday?

Stay tuned. 📻 https://t.co/ePI04YNIbk

— Eleanor Terrett (@EleanorTerrett) February 26, 2025

Despite this, the new administration has not relented on Ripple, and the appeal filed by the SEC is still pending. 

Related: XRP ( $1.11 ) Ledger unveils institutional DeFi roadmap

The case, therefore, still casts a shadow over XRP ( $1.11 ) ’s price, adding fuel to the current headwinds.

Over $22 million in long XRP ( $1.11 ) positions liquidated

XRP ( $1.11 ) ’s drop on Feb. 28 is accompanied by significant liquidations in the derivatives market, signaling strong bearish pressure.

Key points:

• Over $22.30 million worth of long XRP ( $1.11 ) positions have been liquidated over the last 24 hours, compared to $3.2 million in short liquidations.

• Bullish traders are forced to sell their positions when long positions are liquidated.

• The scale of these liquidations mirrors Feb. 3, when $74.5 million in long XRP ( $1.11 ) positions were wiped out, accompanying a 36% drop in price from $2.78 to $1.76.

• XRP ( $1.11 ) ’s open interest (OI) has also dropped 30% in the past seven days, signaling a decline in trader participation.

• 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.

XRP ( $1.11 ) price needs to hold above $2.00

The drop in XRP ( $1.11 ) price today is part of a correction that began on Jan. 16 after the relative strength index (RSI) painted massively overbought conditions following its run to seven-year highs at $3.40.

Key levels to watch:

• XRP ( $1.11 ) bulls are focused on defending the psychological support at $2.00, embraced by the lower boundary of the descending parallel channel.

• XRP ( $1.11 ) 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.

• On the upside, the relative strength index on the daily chart reads 29, indicating a potential recovery over the next few days.

• The bullish case for the altcoin hinges on XRP ( $1.11 ) price flipping $2.20 resistance into support.

• A close above this level could pave the way for a sustained recovery toward $2.40.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.