The price of XRPUSD has broken an uptrend support line from the April low and now faces the $2 level. A support zone would be in play ahead of the April lows and would need to hold to keep the flagging bull run going.
Ripple’s XRP token may suffer from a focus on Bitcoin as investors seek to enter the world’s largest cryptocurrency on recent institutional news.
President Trump’s Trump Technology and Media (NYSE:DJT) announced a plan to raise $1.5 billion to invest in Bitcoin. Meme stock GameStop (GME) was also announcing a similar move to raise investor funds for purchases. Both firms have faced investor criticism for trying to copy MicroStrategy’s playbook at higher levels.
Investors may see these incoming flows as a reason to get involved in BTC and its ETF investment vehicles, ahead of so-called altcoins, such as XRP.
Another headwind for XRP is news that the United States Securities and Exchange Commission (SEC) has announced a conference on digital assets and tokenization for June 5. According to a press release, the conference will host asset managers, industry, regulators and academics.
Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, said on X that the company has sent a letter to the SEC’s Crypto Task Force, addressing a pivotal question from “Commissioner Peirce’s ‘New Paradigm’ speech: When does a digital asset separate from an investment contract?”
According to Ripple, “there is no current basis in the law relating to ‘investment contracts’ to classify most fungible crypto assets as ‘securities’ when transferred in secondary transactions because an investment contract transaction is generally not present and these assets neither create nor represent the necessary cognizable legal relationship between an identifiable legal entity on the one hand and the owner of the crypto asset on the other that is the hallmark of a security”.
Despite the end of the recent SEC v Ripple legal case, XRP has not been able to rally in a substantial way and is currently testing the downside.
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