Why Is XRP Crashing Despite SEC Shifts and the Potential US XRP Reserve?

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US regulators are showing signs of softening their stance oncryptocurrency, as the Securities and Exchange Commission (SEC) dismissed itslawsuit against Coinbase. The lawsuit, accusing the exchange of operating as anunregistered securities broker, was a central issue in the ongoing regulatoryconflict between crypto companies and US authorities. Coinbase'svictory comes after a period of intense scrutiny under the previousadministration. At the same time, XRP has seen a sharp decline of nearly 21.7%in the last 30 days, despite growing speculation about its future, according toCoingape.US Shifts Crypto Stance Amid Regulatory ChangesIn another development, RobinhoodCrypto emerged from a lengthy SEC investigation without facing enforcementaction, signalling a shift in the regulatory treatment of digital assets.While there has been increasing discussion about a potentialUS XRP Reserve and comments from US President Donald Trump on Truth Social, theappointment of pro-crypto leaders like Howard Lutnick to key positions andthe establishment of a crypto task force under the SEC suggest an evolvingstance toward cryptocurrency.XRPUSD Breaks Support, Selling Pressure RisesThe XRPUSD H1 chart indicates a prolonged bearish trend. The2.75000 level has been acting as resistance. Along the way, the price madeseveral significant breakouts, with the breakout at 2.50000 being particularlyimportant. This level has also acted as resistance on intraday charts,reinforcing the bearish outlook on shorter timeframes.A bearish trendline is visible on the H1 chart, furthersupporting the downward momentum. These resistance levels have intensifiedintraday selling pressure among traders.Meanwhile, DeepSeek AI, a predictive analytics platform, hasreleased projections for XRP in 2025. Using machine learning, sentimentanalysis, and economic data, it analyzed Ripple’s legal status, adoption of itsOn-Demand Liquidity (ODL) platform, and market trends. The model estimates XRP could trade between $3.50 and $5.00by late 2025, with legal outcomes, institutional adoption, and broader marketconditions shaping its trajectory.Ripple Expands CBDC, DeFi, and Payments Partnerships AmidInvestor InterestRipple has recently been involved in several keydevelopments. TheDigital Euro Association (DEA) partnered with Ripple to collaborate oncentral bank digital currencies (CBDCs). Based in Frankfurt, the DEA focuses onresearch, education, and policy discussions around digital currencies.Ripple's partnership with the Digital Euro Association (DEA) involves Ripple serving as a technology partner for various Central Bank Digital Currency (CBDC) projects. Specifically, Ripple was selected as the technology partner for the National Bank of Georgia's Digital Lari… pic.twitter.com/AahhBkUnWv— Mr. Man (@MrManXRP) February 24, 2024Investor activity has also increased, with Ripplewhales acquiring 520 million XRP during a price dip. Meanwhile, the SECreassigned Jorge Tenreiro, who was involved in Ripple’s case, raisingspeculation about the agency’s future crypto litigation strategy.Ripple has expanded its RLUSDstablecoin’s reach by partnering with Revolut and Zero Hash, positioning itas a competitor to USDT and USDC. In decentralized finance, Ripplecollaborated with Chainlink to integrate RLUSD into Ethereum-basedapplications.The company also contributed $100,000in XRP to California wildfire relief efforts, supporting organizations likeWorld Central Kitchen and GiveDirectly. Additionally, Ripplepartnered with Portuguese currency exchange provider Unicâmbio to enableinstant international payments between Portugal and Brazil using digitalassets.This article was written by Tareq Sikder at www.financemagnates.com.