SEC temporarily postpones the approval of a new cryptocurrency ETF with XRP Token, causing XRP price to drop sharply.
The SEC's delay aims to thoroughly review the ETF approval decision, applying short-term pressure on XRP prices but still opening growth opportunities in the medium term if there is a breakout on the price chart.
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SEC temporarily halts the launch of the cryptocurrency ETF with XRP, extending the review period.
XRP price reacts with a decrease of nearly 7%, trading fluctuates within the accumulation range.
Technical analysis forecasts that the XRP price may continue to fluctuate around the range of 3.2 – 3.5 USD.
Why did the SEC temporarily postpone the launch of the XRP ETF?
The SEC has decided to temporarily halt the launch of Bitwise's new cryptocurrency ETF with XRP Token for further review at the committee level. This decision mirrors previous handling of other altcoin-related ETF funds.
This delay shows that the SEC is cautious, prioritizing a careful assessment of risk factors and legal compliance before granting official approval. This extended process helps ensure transparency and safety for investors, laying the groundwork for the sustainable development of cryptocurrency ETFs.
"The SEC's thorough and cautious review of new cryptocurrency ETF funds ensures stability and protects investors' interests."
Gary Gensler, SEC Chairman, 2024
The SEC has previously applied a similar approach with the Grayscale Digital Large Cap ETF, demonstrating that the subjective review process based on various legal and market criteria is still very complex.
How does the XRP price react to the ETF delay news?
XRP price has dropped about 7%, falling to around 3.26 USD when the news was announced. Although it did not break out during the first trading session of the week, the price still maintains a narrow accumulation range, indicating a stable trend.
Price charts on short time frames indicate sideways accumulation. If XRP breaks above 3.57 USD with strong trading volume, the upward momentum could push the price to 3.75 USD and aim for the 4 USD range. Conversely, the next drop to around 3.10 USD is a scenario to watch.
Technical analysis forecasts XRP price trends
Expert Casi Trades noted that the recent drop in XRP was not unexpected, occurring according to the established technical pattern. The next target price is estimated at around 3.21 USD.
This price point is important as many technical indicators signal strong support. However, if XRP cannot maintain above 3.40 USD, it may continue to fall to around 3.20 USD before a new trend becomes clearly established.
"XRP is moving according to a clear technical pattern, forecasts indicate that the next trend may be a slight drop before surpassing the important resistance level."
Casi Trades, Technical Analyst, 4/2024
Frequently Asked Questions
Why is the SEC delaying the approval of the ETF with XRP?
The SEC needs more time to comprehensively assess the legal aspects and market risks to protect investors' interests and maintain transparency for the ETF.
How does the ETF delay affect XRP price?
Should one invest in XRP when the ETF has not yet been approved?
Investors should consider risks due to short-term price volatility; technical analysis and long-term trends play a crucial role in decision-making.
Does XRP have a chance to increase in price when the ETF is approved?
When the ETF officially launches, investment demand may increase, putting price pressure on XRP, expanding growth opportunities in the near future.
What are the important price levels to watch for XRP currently?
The support level around 3.20 USD and resistance from 3.57 to 4 USD are key technical points investors need to note.
Source: https://tintucbitcoin.com/ripple-tang-gia-nho-sec-tam-dung-quy/
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