XRP Momentum Stalls as SEC Delays 21Shares XRP ETF Decision
By Leon Okwatch
May 21, 2025
XRP, the cryptocurrency token, has recently encountered a significant slowdown in momentum amidst a decline in trading activity and uncertainty regarding the U.S. Securities and Exchange Commission’s (SEC) review of the proposed 21Shares XRP spot Exchange-Traded Fund (ETF).
Current Market Performance
As of the latest market update, XRP is trading at approximately $2.35. This reflects a decrease of 1.4% in the past 24 hours, and a steeper decline of 8.3% over the past week. This downturn follows a notable price rally earlier in the month. The volume of XRP spot trading has also seen a decrease, amounting to around $2.67 billion in the last day—down by 15.9% from the previous day.
Further insights from derivatives data reveal that the open interest in XRP has fallen by 3.14%, now sitting at $4.58 billion, while futures volume has dropped significantly by 28.45% to $4.24 billion. Analysts interpret the drop in open interest as a sign that traders are closing out their positions rather than initiating new ones, indicating a reduction in confidence regarding XRP’s short-term price movements. The substantial slowdown in trading volume also suggests waning speculative interest among cryptocurrency investors.
SEC Delays ETF Decision
The backdrop to XRP’s current performance involves the SEC’s recent decision to delay its evaluation of the 21Shares Core XRP Trust ETF. On May 20, the agency extended the review period to ensure that the ETF meets the requirements stipulated in Section 6(b)(5) of the Exchange Act, which mandates systems and protections against fraud and market manipulation.
The delay allows for further analysis and public feedback but does not represent a conclusive judgment from the SEC. Stakeholders must submit rebuttals within 35 days of the Federal Register’s publication of the filing, while the official comment period will span 21 days.
Bloomberg’s ETF analyst, James Seyffart, characterized the SEC’s postponement as anticipated. In a recent post, he noted that early approvals for any cryptocurrency spot ETFs—including those for XRP or Solana—are unlikely before late June or early July, with a more realistic timeline suggesting approvals will be delayed until early Q4 of this year.
Technical Analysis
Looking at the technical indicators surrounding XRP, they suggest a period of indecision within the market. Currently, XRP’s price hovers near the lower boundary of the Bollinger Bands, positioning the market as cautiously optimistic. Its Relative Strength Index (RSI) stands at 52, indicating a neutral position.
Short-term Moving Averages (MAs) reveal bearish sentiment, while long- and medium-term MAs indicate a more hopeful outlook. The 20-day to 200-day Exponential Moving Averages (EMAs) and Simple Moving Averages (SMAs) are signaling potential buying opportunities despite the recent price decline.
Analysts suggest that a breakout above the resistance level of $2.38, coupled with sustained momentum past $2.61, could trigger further price increases for XRP. Conversely, should XRP fall below its 20-day SMA of $2.34, it may test lower support levels at $2.26 or even $2.06, which could increase downward pressure on the token.
Market Outlook
With technical indicators and regulatory signals painting a mixed picture for XRP, the market appears to be in a state of cautious observation. Stakeholders await further developments regarding the SEC’s decision on the ETF as it could significantly influence XRP’s market trajectory in the near future.
As the cryptocurrency landscape continues to evolve, participants are encouraged to stay informed and vigilant regarding market changes and regulatory outcomes that may impact their investments.
Related Reading:
- New XRP ETF Hits an Inflow Record as XRP Price Wavers
- Analysis of XRP Futures Debut on CME as Market Conditions Shift
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