Ripple Defends $2.19 Support Amid SEC Delay of XRP ETF Decision to June 17

The crypto market exhibited high hopes regarding XRP ETFs. Still, recent information from the U.S. Securities and Exchange Commission (SEC) postponed the Franklin XRP Fund assessment. The prolonged delay from the SEC creates doubt about XRP ETFs, decreasing investor excitement for XRP fund approvals. These recent developments have seen the XRP price drop nearly 3% to trade at the $2.22 mark.

SEC Delays ETF Review: What Does It Mean for XRP?

The SEC’s postponement of reviewing Franklin XRP Fund till June 17 has generated doubts about regulatory conditions for cryptocurrency. ETF applications are indicators that an asset class is preparing to gain popular acceptance by institutional investors. The forthcoming approval of an XRP ETF would bring extensive benefits, attracting institutional investors who need simpler methods to access the token through non-direct ownership channels.

🚨NEW: The @SECGov has delayed making a decision on Franklin Templeton’s $XRP spot ETF until June 17.https://t.co/3EeRWBzBmg pic.twitter.com/BYfZJw5qWl

— Eleanor Terrett (@EleanorTerrett) April 29, 2025

The extended review period causes investors to speculate about the SEC’s plans for XRP market entry. Over time, the SEC has resisted cryptocurrency products because of market manipulation threats and regulatory compliance requirements. The extended review duration indicates that the SEC does not back XRP’s total acceptance into publicly traded financial markets. Due to regulatory ambiguities, investors currently maintain an attitude of anticipated risk. Investors expected XRP ETF approval to transform its market value and promote wider adoption.

Impact of SEC’s Delay on XRP Price and Market Sentiment

The SEC’s delay in deciding on its ruling created short-term volatility in the market. XRP maintained steady price growth before the ETF approval, but this postponement creates doubts about its future growth potential within the next period. Market participants show hesitation as they need the SEC to provide additional information about its position on XRP.

On 27 April, XRP price exceeded its 50-day moving average, reaching $2.20, then rose by 4.77% above its $2.23 daily resistance level. The Ripple token encountered its first price drop since its success on 29 April. The price of XRP shows strong support at $2.19 while it strives to achieve a new upward movement that would challenge the $2.50 levels reached on March 24. If XRP surpasses this zone, it will initiate additional upward movement towards $3. 

Chart 1- XRP/USD 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025.

The Relative Strength Index currently stands at 54, which indicates bullish market conditions since it remains above the average 50-mean level. A rise in purchasing activity would accelerate the RSI to move toward the 70-mean point, thus strengthening bullish conditions.

The XRP price may decline when early investors withdraw money from the market, as its price heads in an unfavorable direction. Market conditions will shift the Ripple token downward towards the $2.19 support mark. If $2.19 fails to maintain its support level, the XRP price will face additional downward movement towards $2.07.

Is the SEC Delay a Temporary Setback or a Larger Challenge for XRP?

SEC’s extended delay in the Franklin XRP Fund review presents Ripple and XRP price holders with ongoing regulatory hurdles in the token’s market position. The short-term response from market sentiment to the SEC delay has created uncertainty, but the long-term perspective will develop based on XRP’s legal resolution. The XRP price shows continued strength since it provides practical uses in operations across borders. The future development of XRP depends on improving regulatory clarity, as active institutional interest likely depends on the SEC’s eventual approval of an XRP ETF. Meanwhile,  XRP price shows signs of resilience, and traders and investors should be cautious as they monitor the market’s current support and resistance levels.