TLDR
- XRP price trading near $2.35 and facing resistance at $2.3650
- SEC delayed decision on 21Shares XRP ETF, extending review period
- Trading volume decreased by 15.9% to $2.67 billion
- Open interest fell 3.14% to $4.58 billion as traders close positions
- Technical indicators show mixed signals with neutral RSI at 52
XRP is currently trading around $2.35, showing signs of a stagnating market as the Securities and Exchange Commission (SEC) delays its decision on the 21Shares XRP spot ETF. The price has experienced a downward movement over the past week, declining 1.4% in the last 24 hours and 8.3% over the past seven days.
The cryptocurrency recently started a fresh decline after testing the $2.40 zone. XRP broke below several key support levels, reaching a low of $2.3157 before attempting to recover. Currently, the price is hovering near the 100-hourly Simple Moving Average.
A bearish trend line has formed with resistance at $2.3620 on the hourly chart. The price faces several resistance barriers ahead, with the first major level at $2.3850, followed by $2.420. Breaking above these levels could potentially send XRP toward $2.45 and eventually $2.50.
On the downside, initial support sits at $2.3150, with the next major level at $2.30. If XRP breaks below this threshold, it might continue falling toward $2.220.
Market Activity Slows
Trading data reveals a cooling market interest in XRP. Spot trading volume has decreased to $2.67 billion, marking a 15.9% drop from the previous day.
The derivatives market tells a similar story. According to Coinglass data, open interest in XRP fell 3.14% to $4.58 billion, while futures volume dropped sharply by 28.45% to $4.24 billion.
This reduction in open interest suggests traders are closing positions rather than opening new ones. The steep decline in volume further indicates diminishing speculative interest in the short term.
The technical indicators for XRP present a mixed picture. The token’s price is currently near the lower band of the Bollinger indicator, signaling cautious market behavior.
The Relative Strength Index (RSI) stands at 52, reflecting a neutral market sentiment. Short-term moving averages hint at weakness, with both the SMA and 10-day EMA pointing to bearish pressure.
However, medium and long-term moving averages remain optimistic. Despite recent declines, the 20-day to 200-day EMAs and SMAs still flash buy signals, suggesting the longer trend remains intact.
A successful move above $2.38 with sustained momentum beyond $2.61 could signal further upside potential. Conversely, if XRP falls below its 20-day SMA at $2.34, it might test lower support levels at $2.26 or even $2.06.
The hourly MACD indicator shows decreasing bearish momentum, while the hourly RSI has climbed above the 50 level, suggesting a potential shift in short-term sentiment.
SEC Extends ETF Review Period
The current market uncertainty coincides with the SEC’s decision to delay its review of the proposed 21Shares Core XRP Trust. In a May 20 filing, the regulatory body extended the review period 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, a common concern for cryptocurrency investment products.
The proposed Trust plans to use Coinbase Custody for asset storage and aims to track the CME CF XRP-Dollar Reference Rate. The SEC clarified that this delay allows for further analysis and public input rather than representing a final decision.
The regulatory body has established a timeline for feedback. Rebuttals must be submitted within 35 days of the Federal Register publication, with the comment period lasting 21 days.
Bloomberg ETF analyst James Seyffart described the delay as “expected.” He noted that early approvals for any crypto spot ETFs, including those for XRP or Solana, are unlikely before late June or early July. More realistically, approvals might come in early Q4.
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.
— James Seyffart (@JSeyff) May 20, 2025
With both technical and regulatory signals providing conflicting hints about XRP’s next significant move, the market remains in a cautious, wait-and-see state as traders assess the evolving situation.
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