Ripple (XRP) has dropped by 1.2% to $0.52 as one of its greatest rivals, Ethereum, gained endorsement from the US Securities and Exchange Commission (SEC).
The SEC approved eight spot Ethereum exchange-traded funds (ETFs). While the ETFs will launch once the S-1 documents are approved, the markets believe the US regulator might have already endorsed Ether as a commodity.
The news has not triggered gains across the cryptocurrency market, as seen with the Bitcoin ETFs. The global cryptocurrency market cap has decreased by 3.5% in the last 24 hours.
The top ten largest cryptos by market cap are all trading in the red, including XRP. Ripple (XRP) was trading at $0.521 as of 03:32 a.m. EST.
Ripple (XRP) Price Chart
The current price drop signals a bearish sentiment driven by the overall lack of buyer interest across the cryptocurrency market.
The Relative Strength Index (RSI) at 42 signals towards selling activity. If sellers continue outperforming buyers, XRP will likely drop to $0.50. XRP tested this crucial support level briefly before bouncing back.
A closer look at the RSI line shows that it is pointing north. As such, $0.52 might be a good entry point for XRP.
The Moving Average Convergence Divergence (MACD) line also paints a bearish picture by being below the signal line. The MACD histogram bars are also negative, and if bulls fail to regain control, a drop to $0.50 is highly likely.
Coinbase Lists XRP In New York
On May 23, XRP posted a brief jump to $0.54 on May 23 on news that US exchange giant Coinbase has relisted XRP for trading in New York. According to Grewal, the listing happened after a collaboration between the state and the exchange.
Coinbase Ripple’s native token (XRP) for US customers in 2019. However, after the SEC sued Ripple and its executives in 2020, the exchange delisted the token.
Coinbase later reinstated XRP after a court ruled that the secondary sale of XRP does not constitute securities trading. However, XRP’s trading was never reinstated for New York customers because of the state’s stringent crypto rules.
The case between Ripple and the SEC is ongoing, raising speculation over whether a spot XRP ETF might be next.
In Summary
XRP has dropped by 1.2% in the last 24 hours. Crypto markets are down despite the SEC’s recent approval of eight spot Ether ETF applications. XRP posted slight gains on Thursday after Coinbase reinstated XRP trading in New York.
