XRP Price Gets Burnt After Dancing on Fire as Geopolitical Chaos and Profit-Taking Snuff Out the Rally

XRP (XRP-USD) saw its price get burnt today as it fell by almost 3% following a week of dancing on fire. The excitement from its recent “digital commodity” win is starting to fade as geopolitical chaos and profit-taking work together to snuff out the rally. While XRP is still the fourth-largest cryptocurrency, these pressures have pushed the price down to around $1.39 this afternoon.

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Traders Support a Cool Down after Landmark Win

The recent rally began on March 17, when the SEC and CFTC officially labeled XRP as a “digital commodity.” This move ended years of legal battles over whether the token was a security.

Many investors who enjoyed the 45% jump are now selling their tokens to lock in gains. This tactical selling is creating the downward pull we see today. Even with this dip, XRP remains up about 4% from its monthly lows as buyers try to keep the price above the critical $1.40 support level.

Global Tensions Create Market Pressure

Ongoing conflict in the Middle East continues to weigh on risky assets like crypto. While President Trump recently signaled a five-day pause on potential strikes against Iran, the market remains on edge.

Earlier today, oil prices (CM:CL) settled near $100, which helped strengthen the U.S. Dollar. A stronger dollar typically makes it harder for XRP to gain ground because investors move their money into safe assets like cash and government bonds. The uncertainty in the Strait of Hormuz is keeping a lid on the crypto market and preventing any major breakouts this afternoon.

XRP’s Network Activity Brings Growth

Even though the price is falling, the actual usage of the XRP Ledger is exploding. Network data shows that the number of payments jumped 100% over the last 24 hours.

This spike in activity reflects more companies using the ledger for real-world business. For example, Evernorth recently announced plans to use the XRP Ledger for large-scale cross-border lending and settlement. This growing utility is what many analysts believe will eventually stop the price from falling further.

XRP ETF Decision Creates the Next Major Catalyst

All eyes are now on March 27, which is the final deadline for several XRP ETF applications. Since the “commodity” classification is now official, many experts believe the SEC has no legal reason to block these funds.

If the first XRP ETF is approved on Friday, it could trigger more institutional buying.

At the time of writing, XRP is sitting at $1.39.

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