Regulatory milestone reached as SEC formally reviews Bitwise's XRP ETF proposal through Cboe BZX Exchange.
Market observers highlight three potential headwinds for XRP adoption: limited network revenue,Solana crypto chart institutional hesitation, and substantial circulating supply.
Technical charts reveal make-or-break moment as XRP tests critical pattern support that could determine near-term price direction.
Tuesday's trading session saw Ripple's XRP decline approximately 3% despite significant regulatory developments regarding cryptocurrency investment products. The Securities and Exchange Commission officially entered Bitwise Asset Management's XRP exchange-traded fund proposal into its review process, though market participants remain divided about the token's fundamental outlook.
Regulatory Progress Meets Market Skepticism
Tuesday's regulatory filing confirmed the SEC's acceptance of Cboe BZX Exchange's rule change proposal to list and trade shares of Bitwise's XRP ETF. This procedural step initiates a standard 21-day public comment period following Federal Register publication, with the Commission required to render a final decision within 240 days.
This development follows similar acknowledgments for XRP ETF proposals from established firms like Grayscale Investments and 21Shares. Two additional applications from WisdomTree and Canary Capital currently await regulatory recognition.
Industry analysts have noted potential challenges for alternative cryptocurrency ETFs in the current market environment. Many institutional investors remain focused on understanding the implications of recently approved Bitcoin and Ethereum products before considering additional crypto exposures.
From a fundamental valuation perspective, the XRP Ledger's reported $1.15 million in 2024 revenue contrasts sharply with Ethereum's billion-dollar fee generation. Market observers also highlight Ripple's substantial XRP holdings - including 4.485 billion tokens in treasury and 38.9 billion in escrow - as potential sources of ongoing sell pressure.
Bloomberg Intelligence analysts have assigned a 65% probability to eventual XRP ETF approval, citing the ongoing legal proceedings between Ripple and the SEC as a potential catalyst for regulatory clarity.
Technical Crossroads for XRP Price Action
Market data reveals $10.91 million in XRP futures positions were liquidated during Tuesday's trading, with long positions accounting for nearly 80% of the total. This volatility follows XRP's rejection near a symmetrical triangle's upper boundary, resulting in a 10% price decline across three sessions.
The technical landscape shows XRP currently testing critical support at the triangle's lower boundary, having already breached both the 50-day Simple Moving Average and 14-day Exponential Moving Average. A successful bounce from this level could propel the token toward resistance at $2.72, while failure to hold support might trigger a decline toward the $2.17 and potentially $1.96 levels.
Momentum indicators present a mixed picture, with the Relative Strength Index hovering near neutral territory while testing its moving average. The Stochastic Oscillator's recent dip below its midpoint suggests bearish pressure may be building. Market participants await confirmation of either a breakdown or reversal as XRP approaches this technical inflection point.
