The U.S. Securities and Exchange Commission (SEC) has expressed concern over recent applications for spot Bitcoin exchange-traded funds (ETFs), saying they are insufficient. This comes after asset management giants BlackRock and Fidelity filed their applications to launch spot Bitcoin ETFs.
The Wall Street Journal reported that the SEC shared its view on the filings with Nasdaq and Cboe. In particular, the bureau indicated that the filings were unclear and complete.
After the publication of this news, Bitcoin experienced a drop in value of almost 2%. Similarly, other altcoins, including XRP, also saw declines on their respective charts.
In the past 24 hours, XRP witnessed a drop of about 1%, while registering a loss of more than 4% on the weekly chart. As a result, the technical outlook turned bearish, leading to a decline in investor interest.
The charts reflected a decline in both demand and accumulation. Currently, XRP is hovering around a crucial support level and breaching this level could potentially trigger an upward move for XRP. XRP’s market cap decreased, indicating that sellers had a better grip on the market.
XRP Price Analysis: One Day Chart
At the time of writing, the altcoin XRP was trading at USD 0.46. Currently, XRP has reached its lowest level since the end of May. This level has historically acted 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 price recovery.
Looking ahead, the first hurdle for XRP would be the $0.48 resistance followed by a possible move above $0.50. However, if XRP is again rejected at $0.50, it could lead to a return to trading at $0.46 and possibly even a further drop to $0.43.
Technical analysis
Due to the low demand, buying interest has decreased. The Relative Strength Index (RSI) is currently below the half line and close to 40, suggesting that buyers have lost influence and sellers have taken control.
Similarly, XRP has fallen below the 20-Simple Moving Average line. This indicates weakening demand and implies that sellers are currently driving the price momentum in the market
As the demand for the altcoin decreased, the altcoin generated sell signals, although these signals decreased in magnitude. This indicates that bearish momentum could be waning.
The Moving Average Convergence Divergence (MACD) showed red histograms associated with the sell signals, but their size decreased. This suggests that while the bearish sentiment still existed, the price could potentially rebound in the near future.
When considering volatility, the Bollinger Bands are used. In this case, the bands were wide and parallel, indicating range for the altcoin. The upper band, which corresponds to the $0.52 price level, is expected to serve as a significant level of resistance.
Featured image from Unsplash, charts from TradingView.com