XRP’s Bumpy Ride: SEC Delays ETF Decision, Market Hiccups 🚀💰

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Oh, the joys of the crypto world! XRP’s recent rally has hit a speed bump, much like a car on a poorly maintained road. The market activity has slowed down, and the Securities and Exchange Commission (SEC) has decided to play the waiting game with the 21Shares XRP spot ETF. 🕒

At the time of writing, XRP is trading at a modest $2.35, down 1.4% over the last day and a rather disappointing 8.3% over the past week. This suggests that the token’s momentum is waning, much like a candle burning out. Trading volume has also taken a nosedive, with spot trading of XRP (XRP) dropping 15.9% to $2.67 billion from the previous day. 📉

Derivatives data is equally grim. According to Coinglass, open interest in XRP has fallen 3.14% to $4.58 billion, and futures volume has plummeted 28.45% to $4.24 billion. The drop in open interest indicates that traders are closing positions rather than opening new ones, a clear sign of diminished confidence in the short-term price action. The steep decline in volume further suggests a cooling of speculative interest. 🧐

Adding to the market’s woes, the SEC has delayed its decision on the proposed 21Shares Core XRP Trust. In a May 20 filing, the agency announced it was extending the review period to evaluate whether the ETF complies with Section 6(b)(5) of the Exchange Act, which requires protections against fraud and market manipulation. The Trust, which will use Coinbase Custody to store its assets and seeks to track the CME CF XRP-Dollar Reference Rate, is now facing a longer wait. The SEC emphasized that the delay allows for further analysis and public input, rather than indicating a final decision. 📜

Bloomberg ETF analyst James Seyffart, ever the voice of reason, called the delay “expected.” In a May 20 X post, he noted that early approvals for any crypto spot ETFs, including those for XRP or Solana (SOL), are unlikely before late June or early July, and more realistically expected in early Q4.

Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in the 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.

— James Seyffart (@JSeyff) May 20, 2025

The technical indicators for XRP are a mixed bag, much like a salad with too many ingredients. The price of XRP is currently close to the Bollinger indicator’s lower band, suggesting cautious market activity. The relative strength index (RSI) is neutral at 52, and short-term moving averages signal weakness. 📈📉

Both the Simple Moving Average (SMA) and the 10-day Exponential Moving Average (EMA) point to bearish pressure. However, long- and medium-term MAs are more optimistic. Despite the recent decline, the longer trend is still in place, as shown by the 20-day to 200-day EMAs and SMAs flashing buy signals. 🚀

A breakout above $2.38 and sustained momentum past $2.61 could signal further upside, targeting higher resistance zones. Conversely, if XRP falls below its 20-day SMA at $2.34, it could test support at $2.26 or even $2.06, increasing the likelihood of downward pressure. 🌍➡️📉

With both technical and regulatory signals providing conflicting hints about XRP’s next significant move, the market is currently in a wait-and-see state. It’s a bit like waiting for a bus that’s always late—frustrating, but you can’t help but hope it’ll show up eventually. 🚍

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2025-05-21 07:59