XRP price decreases by 13% in a week despite SEC’s landmark commodity ruling
March 23, 2026
XRP investors saw a glimmer of hope last week when the SEC officially designated XRP as a digital commodity, categorizing it alongside major cryptocurrencies like Bitcoin and Ethereum. This move put an end to the years of regulatory uncertainty surrounding XRP and prompted a surge in the XRP price to $1.60. However, this upward momentum was short-lived as the price quickly dipped back to $1.40 within a week.
The SEC’s classification of XRP as a digital commodity was seen as a significant milestone that could potentially open the doors for major institutional investors to enter the market. Yet, this positive development was overshadowed by broader market trends. The Federal Reserve’s decision to hold rates at 3.50% to 3.75% and raise its 2026 inflation forecast to 2.7% caused a ripple effect across the crypto market. Bitcoin experienced a sharp decline from $74,000 to $70,000, triggering a sell-off in XRP as well.
Despite the regulatory clarity provided by the SEC, the XRP price struggled to maintain its momentum in the face of unfavorable market conditions. The sudden shift in market dynamics following the Fed’s announcement led to increased volatility and uncertainty, negating the positive impact of the commodity ruling in the short term. The correlation between Bitcoin and XRP remained strong, with XRP prices mirroring Bitcoin’s movements.
Furthermore, the drop in XRP ETF inflows highlighted the lack of significant institutional interest in XRP. Weekly inflows plummeted from over $200 million to less than $2 million, indicating that institutional investors were hesitant to make sizable investments in XRP. Retail investors accounted for the majority of XRP ETF flows, underscoring the limited institutional participation in the market.
While the SEC’s commodity classification was a step in the right direction for XRP, it did not address the underlying challenges facing the cryptocurrency. With the majority of XRP holders sitting on unrealized losses, any price rallies were met with selling pressure from investors looking to break even. The regulatory certainty provided by the SEC was overshadowed by broader market trends and macroeconomic factors that continued to weigh on XRP prices.
Looking ahead, the upcoming SEC ETF deadline on March 27 is poised to be a pivotal event for the XRP price. Approval of the remaining ETF applications could potentially attract institutional capital into XRP, provided that Bitcoin stabilizes and the market conditions improve. Until then, XRP prices are expected to face resistance levels at $1.33 and $1.27, with $1.60 being a potential target if market conditions align favorably.
In conclusion, while the SEC’s commodity ruling provided a regulatory foundation for XRP, market conditions and macroeconomic factors continue to dictate the cryptocurrency’s price movements. The lack of significant institutional participation and the dominance of Bitcoin in the market underline the challenges facing XRP’s road to recovery.
