Ripple (XRP) Drops 4% Amid SEC Chair Nomination Uncertainty
2min read Ripple (XRP) experienced a significant downturn, nearly slipping below the critical $2 mark on Saturday, before recovering modestly to the $2.15 level. This volatility was triggered by regulatory uncertainty surrounding the nomination of Paul Atkins as the SEC Chair under the Trump administration. Atkins, previously seen as a crypto-friendly figure, now faces opposition from Congress, raising concerns about potential regulatory hurdles for the administration's crypto plans and ongoing ETF reviews.
Despite Ripple securing a major legal victory in its battle with the SEC, the uncertainty surrounding Atkins' confirmation has cast a shadow over XRP's price momentum. The price tumbled to as low as $2.06 on Saturday before rebounding towards the $2.15 level. Critics within Congress have expressed concerns over potential conflicts of interest, signaling broader resistance to pro-crypto policies. If Atkins' confirmation is blocked, it could indicate a more hostile stance toward upcoming legislative initiatives, such as the proposed Crypto Strategic Reserve, which requires congressional approval for federal cryptocurrency acquisitions.
Ask Aime: What impact will the potential regulatory uncertainty surrounding Paul Atkins' confirmation as SEC Chair have on the price of Ripple (XRP)?
Investors are now pricing a 35% chance that the US SEC could approve XRP spot ETFs before July 31, a figure that has declined by 7% since the scrutiny around Trump’s SEC chair nominee, Paul Atkins began. This uncertainty has contributed to XRP’s recent sell-offs, as market participants brace for potential regulatory headwinds. The bearish trend has not been confined to spot market losses alone. In the derivatives sector, traders are aggressively unwinding their positions, signaling a broader loss of confidence in XRP’s short-term recovery prospects. XRP’s open interest—a key indicator of futures market activity—has fallen sharply from $1.6 billion on March 19 to $1.48 billion, reflecting a $220 million decline in just 10 days. This mass exodus suggests that traders are moving to reduce their exposure rather than betting on a swift rebound.
Extended periods of large-scale withdrawals from open interest typically indicate persistent bearish momentum, as market participants either lock in profits or cut their losses ahead of further declines. Unless broader sentiment shifts in favor of crypto regulation, XRP may continue facing selling pressure in the near term. XRP price is struggling to regain bullish momentum after falling below key moving averages, signaling potential downside risks. The XRPUSDT daily chart reveals XRP is currently trading at $2.17, facing resistance from the 50-day SMA at $2.41 and the 100-day SMA at $2.51, as sellers remain firmly in control. The declining trading volume further reinforces bearish sentiment, indicating weak demand at current levels. The Bearish Breakout Probability is supported by the BBP (Balanced Bollinger Percentage) indicator, which sits at -0.3190, a sign of persistent downward pressure. If XRP fails to reclaim the $2.20 support, the price could slide toward $2.00, a psychologically significant level that could trigger panic selling. A breakdown below this mark could open the floodgates for a further decline toward $1.80. On the flip side, a bullish recovery scenario would require a decisive break above the $2.41 resistance. This would invalidate the bearish outlook and potentially drive XRP toward $2.60, aligning with the 100-day SMA. However, without a surge in buying volume, XRP may remain vulnerable to further sell-offs.
