Key Takeaways:
- The XRP exchange supply increased by 1.2 billion tokens in a day.
- Binance led these inflows with 610 million tokens added.
- Now, traders are wondering if the XRP price could be poised for a downfall as the SEC just delayed its ETF decision.
The reserves in XRP on centralized trading platforms had burst dramatically throughout this week, increasing by 1.2 billion tokens in one day. On-chain trackers show that the move was spearheaded by Binance, which registered an inflow of about 610 million XRP. The surge in exchange balances has been a cause of concern, since such inflows tend to be a sign of an increase in selling pressure or planning to anticipate even more liquidity demand.
SEC Delays XRP ETF Ruling
Meanwhile, the U.S. Securities and Exchange Commission (SEC) also declared another delay of its scrutiny of the Franklin Templeton spot XRP exchange-traded fund (ETF). The regulator revealed on late Tuesday that it would keep deliberations open and the application in abeyance at the moment.
The fund proposal, which was initially filed in February 2025, would enable investors to acquire exposure to XRP via a regulated Wall Street product, as opposed to direct ownership of the cryptocurrency. Franklin Templeton, the company with over $1.5 trillion in assets, is one of the largest companies to submit a crypto ETF.
This is another stall in the SEC in processing funds based on digital assets. The agency has, over the past few years, mentioned a few times problems related to possibilities of market manipulation, liquidity fragility, and ensuring protection to investors as the reasons why approvals were sluggish. The concerns seem to have been strengthened by the history of regulatory conflicts that XRP has had and the price fluctuations.
The SEC officials have been continually emphasizing the vulnerability of cryptocurrencies to outside price mechanisms. Recent volatility in XRP markets and the major concentration of tokens on some platforms have intensified that concern. The high growth in exchange reserves during the last day is merely an indicator of the attention paid by the regulator to adequate safeguards before authorizing a spot ETF.
XRP Price Rises Beyond $3
In spite of the regulatory blowback, XRP saw significant positive performance in recent sessions. On September 9-10, the token surpassed the level of $3, which has not been observed in several years. The jump was credited to revitalized institutional demand and regulatory clarity abroad, and not to domestic policy by traders.
The first driver was the enlarged cooperation of Ripple with the European banking giant, BBVA. The cooperation follows the new Markets in Crypto-Assets (MiCA) framework provided by the EU and is likely to simplify the implementation of blockchain-based settlement systems in the banking industry. The move was seen as an affirmation of the position of XRP in mediating between the digital assets and traditional finance by market participants.
Technical Picture: Resistance and Support Levels
On the price chart, XRP has just left a falling triangle formation and is being driven on by momentum to head to the $3 handle. Analysts will observe whether the asset will stabilize at or above $2.9, which is a critical support zone. Provided that the buying strength remains, the upside targets are $3.2, $3.6, and finally $4.
Nevertheless, there has been a warning by technical experts that the breakout was witnessed on sub-optimal trading volume, and as such, we can be cautious. They contend that a noticeable pickup in buy-side flows is what would be needed to sustain the upside.
The Moving Average Convergence Divergence (MACD) signal on the daily chart has recently made a bullish crossover, and more highs are being built, which indicates a possible extension of the uptrend. To most traders, this indicator indicates that momentum is bullish, so long as the liquidity inflow does not shift towards selling.
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