XRP, one of the most prominent cryptocurrencies by market capitalization, has long been viewed as a leading digital asset for cross-border payments and blockchain-based financial solutions. Developed by Ripple Labs, XRP is designed to facilitate fast, low-cost global transactions. Over the years, it has drawn significant attention from both institutional and retail investors, especially due to its unique consensus algorithm and growing ecosystem. However, recent developments have led to increased volatility and hesitation in the market.
The recent upward momentum of XRP has slowed notably, with the token hovering around the $2.35 support zone. Investor attention has shifted amid growing regulatory uncertainty, especially following the U.S. Securities and Exchange Commission’s (SEC) latest delay in ruling on the 21Shares XRP spot exchange-traded fund (ETF).
At press time, XRP is trading at approximately $2.35, marking a 1.4% drop in the past 24 hours and an 8.3% decrease over the past week. These figures reflect a fading bullish trend that had previously driven prices upward earlier this month. Additionally, trading activity has weakened. Daily spot trading volume has fallen to $2.67 billion, a sharp 15.9% decrease compared to the day before.
Market sentiment is also reflected in derivatives data. According to Coinglass, XRP’s open interest declined 3.14% to $4.58 billion, and futures volume plummeted by 28.45% to $4.24 billion. A drop in open interest typically indicates that traders are closing positions instead of initiating new ones — a clear sign of reduced confidence in XRP’s short-term price direction. The decrease in futures volume also points to diminished speculative interest.
One of the main reasons behind this market hesitation is the SEC’s decision to delay its evaluation of the 21Shares Core XRP Trust. In a filing published on May 20, the agency extended its review process to determine whether the ETF complies with Section 6(b)(5) of the Exchange Act, which mandates sufficient investor protections and safeguards against fraudulent and manipulative practices.
The 21Shares Core XRP Trust aims to track the CME CF XRP-Dollar Reference Rate and will store its assets using Coinbase Custody. The SEC emphasized that the delay is procedural and not a final verdict. The public now has a 21-day window to submit comments, while rebuttals must be filed within 35 days following the official publication in the Federal Register.
James Seyffart, a Bloomberg ETF analyst, noted that this delay was “expected.” He mentioned in a May 20 X (formerly Twitter) post that early approvals for crypto spot ETFs — including those based on XRP or Solana (SOL) — are unlikely before late June or July. Most likely, any progress will be seen during the early part of Q4 2025.
From a technical perspective, XRP is showing signs of indecision. The current price is flirting with the lower band of the Bollinger indicator, signaling weakening momentum and increased investor caution. Meanwhile, the Relative Strength Index (RSI) stands at 52 — a neutral level that reflects neither oversold nor overbought conditions.
Short-term technical indicators suggest bearish pressure. Both the 10-day Exponential Moving Average (EMA) and Simple Moving Average (SMA) are pointing downward. These indicators often represent the immediate sentiment of the market and tend to react quickly to price changes. In contrast, medium- and long-term indicators remain more optimistic. The 20-day through 200-day EMAs and SMAs continue to flash buy signals, implying that the broader trend may still be intact despite the recent pullback.
Should XRP manage to break above the $2.38 resistance level and maintain momentum past $2.61, this could open the door for further gains. Potential resistance zones lie ahead that may challenge the token’s upward trajectory. Conversely, if the price falls below the 20-day SMA at $2.34, downside targets may include $2.26 and even $2.06 — both considered key support levels. Traders should be cautious of such technical breakouts or breakdowns.
In summary, XRP’s price is currently in a consolidation phase. On one hand, technical indicators are offering mixed signals; on the other, regulatory developments are introducing a level of unpredictability. Investors and traders remain in a “wait-and-see” mode, closely monitoring news from the SEC as well as market response to upcoming economic data and broader crypto trends.
For long-term investors, it may be prudent to observe how the ETF review unfolds while keeping an eye on macroeconomic factors that influence digital asset markets. Experts suggest that any approval of a spot ETF could be a significant catalyst for XRP’s price in the future, potentially bringing in institutional capital and renewed investor interest.