XRP Pauses Despite Regulatory Tailwinds…Market Watches ETF Approval Closely

XRP is showing a mixed trend as profit-taking has capped gains despite an improving regulatory backdrop.

XRP has posted a gradual recovery over the past few days. In particular, on the 17th (local time), reports that the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly classified crypto assets as “digital commodities” briefly lifted the token intraday to as high as $1.60.

The upward move, however, did not last. Crypto-focused outlet BeInCrypto analyzed that “profit-taking supply emerged, giving back most of the gains.” XRP was trading around $1.47 as of the 19th, according to CoinMarketCap, retracing part of its advance.

This pattern is also evident in on-chain data. According to Glassnode, XRP holders have maintained a net-selling stance over the past 30 days based on the change in exchange net position data. This suggests that, despite regulatory positives, investors have been taking profits into rallies.

Institutional inflows are also showing signs of slowing. According to CryptoQuant, XRP’s institutional buying indicator currently stands at -0.14, remaining in negative territory. This indicates that there is no clear institutional buying trend even as the price holds in the mid-to-upper $1 range. Historically, strong uptrends have accompanied a shift of this indicator into positive territory, suggesting upside momentum is currently limited.

The market is viewing approval of a spot XRP exchange-traded fund (ETF) and expanded institutional access as key variables that could support prices going forward. With some XRP-linked ETF products already on the market, investors are focusing on whether the SEC will grant official approval for a single spot ETF, scheduled for the 27th. If approved, there is speculation that up to $8 billion in new inflows could follow, led by pension funds and Individual Retirement Account (IRA) money.

Other factors cited as strengthening the foundation for institutional inflows include Ripple Prime’s inclusion in the National Securities Clearing Corporation (NSCC) directory under the Depository Trust & Clearing Corporation (DTCC), growth in the market capitalization of the RLUSD stablecoin, and Ripple’s payments network surpassing $100 billion in cumulative processed volume. The market is placing weight on the possibility that these catalysts could serve as medium- to long-term price supports regardless of short-term volatility.

On the technical side, the $1.50 area is being cited as a near-term pivot. BeInCrypto said that “if XRP breaks above $1.58, additional upside room could open toward $1.70.” CoinGape also noted that “a decisive break above $1.50 could open a path to $1.55,” adding that “if upside momentum strengthens thereafter, the $1.65 and $1.70 zones would be the next targets.”

A downside scenario also remains on the table. CoinGape pointed to around $1.45 as near-term support, describing the level as a price zone that has recently seen buying interest on multiple occasions. However, if the price falls below $1.45, $1.40 could act as the next line of defense, and further downside could not be ruled out, the analysis said.