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XRP Price Declines Despite Approval for Canada’s First Spot XRP ETF

The XRP price continued to slide for the second consecutive day, even after receiving a significant boost in the form of approval for Canada’s first spot XRP exchange-traded fund (ETF). According to reports, Purpose Investments, a leading asset manager, has obtained regulatory approval to launch the Purpose XRP ETF. Trading for the ETF is set to commence on June 18 under the ticker XRPP on the Toronto Stock Exchange.

Despite this milestone, market sentiment toward XRP remained bearish. Over the past 24 hours, XRP’s price dropped by 3.4% to $2.17, pushing its market capitalization down to $127 billion. The broader cryptocurrency market also faced downward pressure, with the overall market cap declining by 3.6%. Major tokens like Bitcoin and others followed a similar trend, reflecting weak investor sentiment.

Geopolitical and Economic Factors Weigh on Crypto Markets

The ongoing decline in cryptocurrency prices can be attributed to several macroeconomic and geopolitical factors. Heightened tensions in the Middle East and uncertainty surrounding the U.S. Federal Reserve’s upcoming interest rate decision have created a risk-averse environment. Rising inflation has further dampened hopes for imminent rate cuts, adding to the cautious market sentiment.

Potential Bullish Catalysts for XRP

While short-term pressures persist, there are several positive developments that could bolster XRP in the coming months:

  • SEC v. Ripple Case Settlement: A recent court filing revealed that Ripple and the SEC have reached a proposed $50 million settlement. If approved, this resolution could provide much-needed regulatory clarity for XRP, potentially boosting investor confidence.
  • Policy Shifts: Former CFTC Chair Chris Giancarlo recently suggested issuing government bonds for crypto assets like XRP and Bitcoin during the XRPL Apex 2025 conference in Singapore. This indicates a growing policy shift toward regulated crypto adoption.
  • Product Expansion: Ripple is set to launch its RLUSD stablecoin, a key addition to its ecosystem. Additionally, the company has been strengthening its regulatory presence in global crypto hubs such as Dubai and Singapore.

Technical Analysis: Mixed Signals for XRP

From a technical perspective, XRP is exhibiting a multi-month bull pennant pattern on the 1-week/USDT chart. This bullish continuation pattern often precedes a breakout, with potential price targets derived from the length of the initial flagpole. A breakout could project a move to $4.61, representing a potential 114% gain from current levels.

Technical analyst Mikybull Crypto has drawn parallels between XRP’s current chart structure and its 2017 bull run. During that period, a similar bull pennant breakout preceded a rally of over 1,300% to all-time highs of $3.40.

Momentum Indicators and Short-Term Risks

Momentum indicators paint a mixed picture for XRP:

  • Weekly Chart: A golden cross has recently formed, with the 50-day Simple Moving Average (SMA) crossing above the 200-day SMA. This is typically viewed as a bullish signal, suggesting a continuation of the upward trend.
  • Daily Chart: Conversely, the daily chart shows a death cross, where the 200-day SMA has crossed above the 50-day SMA. This is often interpreted as a bearish reversal signal. Additionally, the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are trending lower, reinforcing short-term downside risks.

Key Levels to Watch

Investor sentiment remains cautious, particularly after the SEC delayed its decision on Franklin Templeton’s proposed spot XRP ETF, extending the review period into late July. This delay, coupled with broader market uncertainty, has contributed to XRP’s recent underperformance.

Key price levels to monitor include:

  • Support at $2.00: If XRP fails to hold this psychological level, it could decline further toward $1.62, its April 2025 low.
  • Resistance Breakout: Holding above $2.00 and breaking above the pennant’s resistance could reignite bullish momentum, potentially leading to a retest of cycle highs.

While short-term risks remain, the combination of regulatory clarity, product innovation, and technical patterns suggests that XRP could see renewed interest in the longer term.

Disclosure: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any financial decisions.

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