During Tuesday’s U.S. trading session, the crypto market witnessed a surge in selling pressure along with Bitcoin breaking below $95,000. The bearish momentum quickly spread to the altcoin market and major assets like XRP plunged over 6%. Despite the notable downturn, the Ripple cryptocurrency is experiencing bullish speculation as the SEC acknowledged a filing for the Bitwise Spot XRP ETF.
Key Highlights:
- On Tuesday, the U.S. SEC officially acknowledged the Bitwise Spot XRP ETF filing.
- A fresh lower high formation in XRP price bolsters a 9% downswing to breach the 38.2% Fibonacci retracement level.
- The $2 psychological level backed by 50% FIB and close alignment with the 200-day exponential moving average creates strong pullback support.
SEC Acknowledgment Bitwise Spot XRP ETF Filling
On February 18th, Tuesday, the U.S. Securities and Exchange Commission (SEC) officially acknowledged a filing for the Bitwise Spot XRP ETF. This marks a significant step in the regulatory process as it initiates SEC’s formal review, which could extend up to 240 days.
Further insights from AlmightyPain, a prominent crypto commentator on X (formerly Twitter), provide additional context to the development. AlmightyPain’s post highlights that the SEC acknowledged Grayscale’s 19b-4 filing for an XRP ETF on February 13, 2025. This acknowledgment initiates a structured review period, which could conclude by mid-October 2025 at the latest.
A potential approval of spot XRP ETF would provide institutional investors with a regulated exposure to XRP crypto, likely boosting liquidity and mainstream adoption.
Downsloping Trendline Drives Correction Trend In XRP Price
From the mid-January top of $3.36, the XRP price has witnessed a steady downturn to $2.52, registering a 25% loss. A downsloping trendline drives this correction trend in the daily chart with a series of lower-high formations, indicating the sell-the-bounce sentiment.
If selling pressure persists, the altcoin could plunge below 38.2% FIB at $2.3 and head for the $1.94 floor, projecting a potential loss of 22%. However, the aforementioned level coinciding with the 50% FIB level suggests the current retracement is still healthy for buyers to regain control.
With the growing momentum behind XRP-based exchange-traded funds, the altcoin could defend these key Fibonacci support and breach the overhead resistance trendline.
A potential breakout will surge the market buying pressure and support a rally past the $4 high.
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