XRP pauses despite regulatory tailwinds…Eyes on spot ETF approval

XRP is showing mixed price action, with gains capped by profit-taking even as the regulatory backdrop improves.

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

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

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

A slowdown in institutional inflows is also emerging. CryptoQuant data show XRP’s institutional buying indicator remains in negative territory at -0.14. This indicates that despite prices holding in the mid-to-high $1 range, there is no clear institutional buying trend. Historically, strong uptrends tended to accompany a shift of this indicator into positive territory, implying upside momentum is currently constrained.

The market is viewing the approval of a spot XRP exchange-traded fund (ETF) and broader institutional access as key variables that could support prices going forward. With some XRP-based ETF products already on the market, investors are watching whether the SEC will grant official approval for a single spot ETF on the 27th. If approved, new inflows of up to $8 billion are being discussed, centered on pension and individual retirement account (IRA) assets.

Also cited as factors that could strengthen the foundation for institutional inflows are Ripple Prime’s inclusion in the National Securities Clearing Corporation (NSCC) directory under the Depository Trust & Clearing Corporation (DTCC), the expansion of Ripple USD (RLUSD) market capitalization, 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, separate from near-term volatility.

On the technical front, the $1.50 area is being flagged as a near-term pivot. BeInCrypto said that “if XRP breaks above $1.58, additional upside toward $1.70 could open up.” CoinGape likewise noted that “a decisive break above $1.50 could open a path toward $1.55,” adding that “if bullish 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 it as a price zone that has seen buying interest flow in multiple times recently. However, if it falls below $1.45, $1.40 could act as the next line of defense, and further declines could widen the downside, the analysis said.