XRP is trading at approximately $2.35, down 1.4% over the last day and 8.3% over the past week
SEC has delayed its decision on the proposed 21Shares Core XRP Trust ETF application
Trading volume has decreased by 15.9% to $2.67 billion in the past day
Open interest in XRP fell 3.14% to $4.58 billion while futures volume dropped 28.45%
Technical indicators show mixed signals with short-term bearish pressure but longer-term bullish trend
XRP’s price movement has hit a roadblock near the $2.35 support level as the Securities and Exchange Commission (SEC) announced a delay in its decision regarding the 21Shares XRP ETF application. This development has contributed to a slowdown in market momentum for the digital asset.
Current data shows XRP trading at $2.35, representing a 1.4% decrease in the last 24 hours and an 8.3% decline over the past week. These figures suggest a cooling off period following the token’s earlier strong performance this month.
Trading activity has also shown signs of weakening. The past day saw spot trading volume of $2.67 billion, marking a 15.9% reduction compared to the previous day.
The derivatives market echoes this trend. According to Coinglass data, open interest in XRP has decreased by 3.14% to $4.58 billion.
Futures volume experienced an even steeper decline, falling 28.45% to $4.24 billion. The reduction in open interest indicates traders are closing positions rather than opening new ones.
This typically signals lower confidence in short-term price action. The substantial drop in volume further points to diminishing speculative interest in the token.
Regulatory Developments
The market slowdown coincides with the SEC’s extension of its review period for the proposed 21Shares Core XRP Trust. In a May 20 filing, the agency stated it needed more time to evaluate whether the ETF complies with Section 6(b)(5) of the Exchange Act.
This section specifically requires protections against fraud and market manipulation. The Trust plans to use Coinbase Custody for asset storage and aims to track the CME CF XRP-Dollar Reference Rate.
The SEC emphasized that this delay allows for further analysis and public input rather than representing a final decision on the matter. Rebuttals must be submitted within 35 days of Federal Register publication.
Bloomberg ETF analyst James Seyffart characterized the delay as “expected.” He added that early approvals for any crypto spot ETFs, including those for XRP or Solana, are unlikely before late June or early July.
More realistically, Seyffart projected approvals might come in early Q4 of this year.
Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in next few days.
If we’re gonna see early approvals from the SEC on any of these assets — i wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early 4Q.
XRP’s technical indicators present a mixed picture. The price currently hovers near the lower band of the Bollinger indicator, suggesting cautious market activity.
The relative strength index (RSI) stands at 52, reflecting a neutral market stance. Short-term moving averages point to weakness, with both the SMA and 10-day EMA indicating bearish pressure.
However, longer-term indicators tell a different story. Despite recent declines, the broader trend remains intact, as evidenced by the 20-day to 200-day EMAs and SMAs displaying buy signals.
For bullish momentum to resume, XRP would need to break above $2.38 and maintain momentum past $2.61. This could potentially target higher resistance zones.
Conversely, if XRP drops below its 20-day SMA at $2.34, it might test support at $2.26 or even $2.06. Such a move would increase the likelihood of continued downward pressure.
A bearish trend line has formed with resistance at $2.3620 on the hourly chart. Additional resistance levels include $2.3850 and $2.420.
On the support side, levels to watch include $2.3150 and $2.30. A break below $2.30 could push the price toward $2.220 or even $2.20.
With conflicting technical and regulatory signals about XRP’s next major move, the market currently appears to be in a wait-and-see mode.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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