XRP news today: XRP Drops 3% Amid SEC Review Delay

Ripple, the company behind the cryptocurrency XRP, is currently defending a critical support level of $2.19 amid a delay in the U.S. Securities and Exchange Commission's (SEC) decision on the Franklin XRP Fund. The SEC has postponed its review until June 17, 2025, which has cast doubt on the regulatory conditions for cryptocurrency and dampened investor enthusiasm for XRP fund approvals. This delay has led to a nearly 3% drop in the XRP price, bringing it down to $2.22.

The SEC's decision to extend the review period for the Franklin XRP Fund has raised questions about the regulatory environment for cryptocurrency. ETF applications are often seen as indicators that an asset class is preparing for broader acceptance by institutional investors. The approval of an XRP ETF would bring significant benefits, attracting institutional investors who seek simpler methods to access the token through non-direct ownership channels. However, the SEC's prolonged review suggests that the regulatory body may not be fully supportive of XRP's entry into publicly traded financial markets. This uncertainty has led investors to adopt a cautious approach, as they await further clarity from the SEC.

The delay in the SEC's decision has introduced short-term volatility into the market. Prior to the ETF approval, XRP had been experiencing steady price growth. However, the postponement has created doubts about its future growth potential. Market participants are now hesitant, awaiting additional information from the SEC regarding its stance on XRP. On April 27, the XRP price exceeded its 50-day moving average, reaching $2.20, and then rose by 4.77% above its $2.23 daily resistance level. However, on April 29, the Ripple token experienced its first price drop since its success, with the price showing strong support at $2.19 as it attempts to achieve a new upward movement that would challenge the $2.50 levels reached on March 24. If XRP surpasses this zone, it could initiate additional upward movement towards $3.

The Relative Strength Index (RSI) currently stands at 54, indicating bullish market conditions as it remains above the average 50-mean level. A rise in purchasing activity could accelerate the RSI towards the 70-mean point, further strengthening bullish conditions. However, the XRP price may decline if early investors withdraw money from the market as its price heads in an unfavorable direction. Market conditions could shift the Ripple token downward towards the $2.19 support mark. If $2.19 fails to maintain its support level, the XRP price will face additional downward movement towards $2.07.

The SEC's extended delay in reviewing the Franklin XRP Fund presents ongoing regulatory challenges for Ripple and XRP price holders. The short-term market sentiment response to the SEC delay has created uncertainty, but the long-term perspective will develop based on XRP's legal resolution. The XRP price shows continued strength due to its practical uses in cross-border operations. The future development of XRP depends on improving regulatory clarity, as active institutional interest likely hinges on the SEC's eventual approval of an XRP ETF. Meanwhile, the XRP price shows signs of resilience, and traders and investors should remain cautious as they monitor the market's current support and resistance levels.