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Ripple (XRP) Price Risks Fakeout As Spot ETF Approval Stalls at SEC
The XRP token price has failed to sustain its bullish momentum, prompting concerns about a fakeout as the spot ETF approval remains stalled at the Securities and Exchange Commission (SEC). Despite a technically favorable setup and heightened expectations surrounding an ETF listing, Ripple’s XRP token underperformed both Bitcoin and Ethereum.
In recent days, XRP price surged to a local high near $2.31 after breaking above a falling wedge pattern on April 27. However, the upward move proved short-lived as sellers regained control, causing the price to decline. The lack of follow-through signals caution among traders.
On the contrary, Bitcoin continued its upward climb, holding near the $95,000 mark and extending April gains amid consistent spot ETF inflows and strong institutional interest. Ethereum mirrored this momentum, stabilizing above $1,800 after bouncing from monthly lows.
The recent rejection of WisdomTree’s spot XRP ETF application by the SEC highlights the agency’s entrenched skepticism towards XRP’s market infrastructure. The regulator cited three key objections to its approval decision: first, the vulnerability of XRP’s spot markets to manipulation due to fragmented liquidity and inconsistent oversight; second, the absence of a formal surveillance-sharing agreement between U.S. exchanges and major XRP trading venues; and third, investor protection risks resulting from XRP’s price volatility and susceptibility to sharp drawdowns.
These arguments appear increasingly disconnected from the broader political narrative, with some analysts questioning the agency’s internal inertia and reluctance to treat Ripple on the same terms as Bitcoin and Ethereum, both of which have fully approved spot ETF structures. While futures-based XRP ETFs have been cleared, the SEC continues to block a spot equivalent, raising concerns about regulatory bias.
As a result, the RSI remains flat near 55, indicating a neutral bias in the market’s sentiment. Volume has also dropped post-breakout, signaling a lack of conviction behind the move. In light of these developments, XRP risks slipping back into a consolidation phase unless bulls can reclaim $2.49 with strong volume.
In conclusion, the inability to sustain momentum after breaking above a technically favorable structure and the regulatory hurdles surrounding an ETF listing have raised concerns about a fakeout in Ripple’s XRP token price.
Source: https://coinchapter.com/ripple-xrp-price-risks-fakeout-as-spot-etf-approval-stalls-at-sec/
