XRP Plunges After SEC’s ETF Blow, But Looks Like a Rally Is Possible

The United States Securities and Exchange Commission (SEC) has raised concerns about recent filings for spot bitcoin exchange-traded funds (ETFs), saying they are insufficient. This comes after asset management giants BlackRock and Fidelity submitted their applications to launch spot bitcoin ETFs.

The Wall Street Journal reported that the SEC shared its view on the filing with Nasdaq and Cobo. Specifically, the agency expressed that the filing lacked clarity and comprehensiveness.

Following the release of this news, bitcoin experienced a drop in value of approximately 2%. Similarly, other altcoins including XRP also saw a decline in their respective charts.

In the past 24 hours, XRP saw a decrease of about 1%, while on the weekly chart, it registered a loss of over 4%. As a result, the technical outlook turned bearish, leading to a loss of investor interest.

The chart showed a decline in both demand and accumulation. Currently, XRP is hovering around an important support level, and a breach of this level could potentially trigger an upward move for XRP. The market capitalization of XRP has decreased, indicating that sellers have a strong hold on the market.

XRP Price Analysis: One Day Chart

At the time of writing, the altcoin XRP was trading at $0.46. Currently, XRP has reached its lowest level since late May. This level has historically served as an important support level for the coin. This level is often referred to as a bullish order block, and has the potential to drive a price correction.

Looking ahead, the first hurdle for XRP will be the resistance at $0.48, followed by a possible move above the $0.50 mark. However, if XRP faces another rejection at $0.50, it could return to trade at $0.46 and possibly even lower to $0.43.

technical analysis

Interest in buying has decreased due to low demand. The Relative Strength Index (RSI) is currently below the halfway line and near the 40-mark, which suggests that the buyers have lost their influence and the sellers are taking control.

Similarly, XRP declined below the 20-simple moving average line. This indicates weak demand and implies that sellers are currently driving price momentum in the market

Altcoins generated sell signals as the demand for altcoins decreased, although these signals were diminishing in size. This indicates that the pace of recession may be slowing down.

The Moving Average Convergence Divergence (MACD) showed red histograms associated with sell signals, but their size was declining. This shows that the bearish sentiment is still present, but there could be a potential rally in the price in the near future.

When considering volatility, Bollinger Bands are used. In this case, the bands were wide and parallel, indicating a range for the altcoin. The upper band, which is aligned with the $0.52 price level, is expected to act as an important resistance level.

Featured Image from Unsplash, Chart from Tradingview.com