XRP’s Rally Faces Hurdles Amid SEC Review
XRP’s recent surge has hit a snag. Teh market is slowing down, and there’s uncertainty about the SEC’s review of the 21Shares XRP spot ETF. Currently,XRP trades at around $2.35, down 1.4% in the last 24 hours and 8.3% over the past week. This indicates a loss of momentum after a strong start this month.
Trading volume has also dropped. In the last 24 hours, spot trading volume fell by 15.9%, reaching $2.67 billion. This decline suggests a cooling interest in the token. The SEC’s decision on the 21Shares XRP spot ETF is pending, adding to the uncertainty. The token’s price drop reflects this hesitation.
Derivatives data supports this trend. Open interest in XRP futures fell by 3.14%, now at $4.58 billion. Futures volume saw a 28.45% decrease to $4.24 billion. Traders are closing positions rather than opening new ones, hinting at reduced confidence in short-term price movements. The SEC’s delay in approving the ETF has likely contributed to this slowdown. The SEC needs more time to assess the ETF’s compliance with anti-fraud and manipulation rules.
James Seyffart, an ETF analyst at Bloomberg, believes early approvals for crypto spot ETFs, including XRP, are unlikely before late June or early July.More realistically, approvals may come in early Q4. This delay is expected as the SEC needs time for thorough analysis and public input.
Technical indicators for XRP show mixed signals. The price is near the Bollinger indicator’s lower band, suggesting cautious market activity.The relative strength index is neutral at 52. Short-term moving averages indicate weakness, while long- and medium-term MAs are more optimistic.A breakout above $2.38 could signal further upside, but a drop below $2.34 could test support at $2.26 or $2.06.
With conflicting technical and regulatory signals, the market is in a wait-and-see mode. Traders are watching for key levels like $2.38 and $2.61 for potential upside, and $2.34 for downside pressure. The longer trend remains positive,but the short-term outlook is bearish. The market is currently indecisive, awaiting further developments.
