Ripple maintains $2.19 backing in the face of SEC's postponement of XRP ETF ruling until June 17th.
World of Crypto: What's Happening with XRP?
The crypto community widely hoped that XRP ETFs were on the horizon, but a recent decision by the U.S. Securities and Exchange Commission (SEC) has put the brakes on the Franklin XRP Fund assessment. This extended delay from the SEC has sparked a wave of uncertainty, dampening the excitement around XRP fund approvals, and causing a dip in XRP's price. As of now, XRP trades at around $2.22.
SEC Holding Up: Implications for XRP
The postponement of the SEC's review of the Franklin XRP Fund until June 17 raises important questions about the regulatory climate for cryptocurrency. Securing ETF approval serves as a sign that an asset class is preparing to gain acceptance by institutional investors. An XRP ETF green light would unlock numerous benefits, attracting investors searching for simpler avenues to invest indirectly in the token.
On the other hand, the protracted review period raises concerns about the SEC's stance on XRP market acceptance. Over time, the SEC has been wary of cryptocurrency products due to concerns about market manipulation and regulatory compliance. The delay suggests that the SEC may not be ready to endorse XRP's full integration into the publicly traded financial markets. With regulatory disputes still looming, investors remain cautious, often viewing XRP as a high-risk asset.
Rollercoaster Ride: XRP Price and Market Mood
The SEC's delay sparked temporary market volatility. Prior to the ETF approval, XRP maintained a steady upward trend, but the delay clouded its growth prospects for the near future. Investors demand clarity on the SEC's position concerning XRP to proceed with confidence.
On April 27, the XRP price rose above its 50-day moving average to hit $2.20, then soared by 4.77% over its $2.23 daily resistance level. However, this short-lived upward trend came to an end on April 29 as the price began to slide. The Ripple token appears to have strong support at $2.19 as it fights to regain its upward momentum, aiming to surmount the $2.50 levels reached back on March 24. If it succeeds, it will pave the way for additional upward movement towards $3.
Chart 1 - XRP/USD 1-day chart, courtesy of Emmaculate, published on TradingView, April 30, 2025.
With a current Relative Strength Index standing at 54, the market remains bullish as the RSI remains above the average 50-mean level. An increase in purchasing activity could drive the RSI closer to the 70-mean point, bolstering bullish conditions further.
The XRP price could decrease if early investors start to take profits as the price trends southward, or the Ripple token may find support at the $2.19 level. If the $2.19 level fails to maintain its support, the XRP price could be pushed downward towards $2.07.
SEC's Decision: Temporary Hiccup or Large Challenge for XRP?
The prolonged delay in the Franklin XRP Fund review poses ongoing regulatory obstacles for Ripple and XRP holders. In the short term, the SEC's decision has cast a shadow over the market, creating uncertainty. However, the long-term outlook will depend on how XRP navigates the regulatory landscape. Despite the short-term setback, XRP's real-world utility—reflecting its practical applications in cross-border operations—provides a foundation for growth as long as regulatory clarity is achieved. The SEC's decision regarding the Franklin XRP Fund sets a precedent for other crypto ETF applications and will impact the broader cryptocurrency market's interaction with traditional financial instruments. Meanwhile, the resilient XRP price shows signs of recovery, and it is crucial for traders and investors to keep a keen eye on the market's current support and resistance levels.
Information nuggets:
- The delay of the SEC's review of the Franklin XRP Fund pushed the XRP price down by nearly 3%.
- Institutional investors are keen on cryptocurrencies but require simpler ways to invest indirectly.
- The SEC's hesitation concerning cryptocurrency products stems from concerns about market manipulation and regulatory compliance.
- XRP faces continued strength due to its practical use cases across borders.
- The future development of XRP hinges on the achievement of regulatory clarity and, eventually, potential SEC approval of an XRP ETF.
- The SEC's decision to postpone the review of the Franklin XRP Fund until June 17 has caused a dip in XRP's price, with the token trading at around $2.22 as of now.
- Securing ETF approval for XRP would unlock numerous benefits, attracting investors seeking simpler avenues to invest indirectly in the token.
- Over time, concerns about the SEC's stance on XRP market acceptance have risen, suggesting that the SEC may not be ready to endorse XRP's full integration into the publicly traded financial markets.
- The XRP price could experience decreases if early investors begin taking profits, but the token's real-world utility, reflecting its practical applications in cross-border operations, offers a foundation for growth as long as regulatory clarity is achieved.
- The future development of XRP is contingent on the achievement of regulatory clarity and, eventually, potential SEC approval of an XRP ETF, which sets a precedent for other crypto ETF applications and will impact the broader cryptocurrency market's interaction with traditional financial instruments.
- The prolonged review period raises questions about the regulatory climate for cryptocurrency, as securing ETF approval serves as a sign that an asset class is preparing to gain acceptance by institutional investors in the world of finance and technology.
