XRP Falls Below $1.40 as Small Investors Buy, Major Holders Await SEC Ruling

XRP has experienced significant downward momentum, falling below the critical $1.40 support level.

The cryptocurrency has shed approximately 3.7% in recent trading, dropping from around $1.44 to $1.3872.

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Sellers maintain dominance over buyers as broader market weakness affects digital assets.

The overall cryptocurrency market has declined by about 2%, with total market value currently at $2.36 trillion.

Bitcoin has remained trapped below the $70,000 threshold, contributing to risk-off sentiment.

The loss of $1.40 support has fundamentally changed XRP's short-term outlook.

This level has transformed from support into resistance that the token now struggles to reclaim.

Technical indicators confirm the bearish sentiment, with XRP trading in a descending channel between $1.38 and $1.42.

The MACD histogram shows bearish characteristics as the signal line has dropped beneath the MACD line.

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Traders are watching whether the $1.38–$1.40 area can hold as support.

A decisive break could open the way toward the $1.30–$1.32 support zone.

The price drop was accompanied by increased trading activity, suggesting stop-loss orders were triggered.

This creates a potential chain reaction of more traders exiting positions.

Each attempt to reclaim $1.40 has been met with selling pressure, indicating technical weakness.

A notable divergence has emerged in holder behavior, with smaller investors accumulating during price weakness.

“Why XRP is falling fast below $1”

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Major holders remain subdued as uncertainty persists.

Wallets containing under 100 XRP have reached a record high of 5.66 million.

Addresses holding between 100 and 100,000 XRP have also achieved a record at 2.01 million.

However, wallets containing over 100,000 XRP have plateaued at 32,054.

This distribution pattern often indicates smaller investors provide liquidity for larger holders potentially exiting.

XRP holdings on Binance have increased to 2.79 billion XRP, up from 2.55 billion in early February.

The March 27 SEC deadline for XRP spot ETF decisions is a critical market catalyst.

The SEC must decide on multiple pending XRP spot ETF filings by March 27.

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Companies awaiting decisions include Grayscale, 21Shares, Bitwise, Canary Capital, WisdomTree, and Franklin Templeton.

Grayscale seeks to transform its $2.1 billion XRP trust into a spot ETF product.

Franklin Templeton has submitted a competitive 0.15% fee structure.

Bloomberg analysts estimate a 95% probability of at least one approval before year-end.

Market projections suggest $8 billion in potential institutional capital inflows following approvals.

Regulatory developments provide positive context for XRP's long-term prospects.

“Table of Contents XRP faces downward momentum as the critical March 27 SEC spot ETF decision date draws closer”

Blockonomi

The SEC and CFTC published a 68-page structure classifying XRP as a digital commodity.

@coindesk

XRP is now classified alongside Bitcoin, Ethereum, Solana, Cardano, and Dogecoin.

This regulatory clarity could boost institutional confidence and adoption.

ProShares previously introduced a 2x leveraged XRP ETF on NYSE Arca in July 2025.

This demonstrates growing institutional interest in XRP products.

Broader market weakness in ADA and SOL suggests XRP's struggles are not isolated.

External market factors suggest continued volatility for XRP in the near term.

The war in Iran has made riskier assets less attractive, affecting XRP.

Unless XRP climbs back above $1.40 and holds it, bearish momentum is likely to continue.

A stronger move toward $1.54 would be needed to signal bullish momentum returning.

Attention is shifting to the $1.32 support zone as a potential next floor.

The market appears uncertain, waiting for SEC ETF decision clarity.

Smaller investors continue accumulating while major holders remain on the sidelines.