XRP’s price has faced downward pressure as traders withdrew $220 million from Ripple markets, raising concerns over potential regulatory hurdles. The sell-off follows scrutiny surrounding Paul Atkins, a nominee for SEC Chair, with lawmakers questioning possible conflicts of interest. Investors fear that regulatory uncertainty could delay or block the approval of an XRP spot ETF, further impacting market sentiment.
Amid the downturn, XRP briefly dropped near the $2 mark before recovering slightly. Traders remain cautious as the situation unfolds, with market movements closely tied to regulatory developments.
Regulatory Concerns Weigh on XRP Price
The price of XRP plummeted after market participants reacted negatively to potential regulatory issues concerning Paul Atkins, who ran to become SEC Chairman under President Trump. The dispute emerged because potential conflicts of interest created doubt about crypto regulation in the future.
Members of the market predict that Congress’ resistance will impact regulatory measures affecting both Ripple and the entire cryptocurrency marketplace. The pro-crypto position of Atkins remains apparent, but his nomination dispute has generated worry about enhanced oversight targeting digital assets like XRP.
Investors Pull $220 Million from the Ripple Market
XRP derivatives traders have displayed bearish trends that lead them to decrease their investments. The XRP open interest reduced itself from $1.6 billion to $1.48 billion between March 19 and March 30 according to CryptoQuant data indicating $220 million of funds withdrawal.
Traders are currently unwinding their positions instead of participating in price recovery bets, according to open interest data. The continuous removal of positions from futures markets signifies weak trader confidence and increased selling intensity that predicts lower prices during upcoming days.
XRP Spot ETF Approval Odds Decline
Market expectations about an XRP spot ETF approval have declined due to unclear regulatory circumstances involving Paul Atkins. Data from Polymarket reveals that the approval chances for an XRP ETF have decreased to 35% before July 31 after a 7% dip during the week.
Investors fear that if the SEC rejects Paul Atkins the upcoming nominee may oppose ETF applications or extend review times for them. Market uncertainty has increased because of this development and consequently continues to drive the falling prices.
XRP Price Struggles to Maintain Support
XRP price is $2.17 but faces trading obstacles at $2.41 which corresponds with the 50-day simple moving average (SMA). The resistance from the 100-day simple moving average at $2.51 serves as an essential barrier to predict XRP’s price movement.
Evaluating technical signals shows that XRP needs to keep above $2.20 to avoid dropping more than $2.00. Breaching the $2.20 psychological threshold may start investor panic that could cause the price to sink toward $1.80.
The price recovering past $2.41 marks a turning point for XRP that might enable it to reach $2.60 in case buying momentum strengthens. Any immediate profit potential of XRP remains at risk due to ongoing regulatory issues which demand traders remain watchful about forthcoming market events.
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