The XRP community saw a wave of cautious optimism earlier today as fresh developments from the SEC roundtable meeting appeared to signal a shift in regulatory tone.
Market attention quickly turned to the comments made by SEC Chair Paul Atkins, whose remarks are now seen as a potential turning point for the future of digital assets, including XRP.
XRP is currently trading at $2.51, recording a 24-hour gain of 3.48%, although the rally that pushed the token to a high of $2.65 earlier in the week has slowed. This shift in momentum follows an SEC Crypto Task Force roundtable on Monday, where the Commission explained its new tone on the regulation of cryptos.
During the session, Chair Paul Atkins highlighted the need to desist from reactive, enforcement-based policymaking. He revealed that the Commission had been too long in regulatory siloes, which had made it difficult for it to stay ahead when it came to market innovation.
Atkins promised to create structured rules for digital assets, specifically affecting those classified under securities.
He also reaffirmed the current administration’s focus on making the United States a world leader in the cryptocurrency market. These remarks have created many conversations in the crypto space, particularly after the resolution of the years-long legal battle between Ripple and the SEC.
The legal fight started in December 2020 and ended after Ripple agreed to settle with the US SEC for $50 million. This was a significant drop from the initial $125 million penalty. Furthermore, Ripple and the SEC agreed to drop their appeals, ending the case once and for all and providing much-needed regulatory clarity to the XRP holders.
XRP Price Movement Reflects Market Reassessment
Despite the initial positive reaction, XRP’s upward momentum has shown signs of cooling. Data from CoinGlass reveals that $35 million in liquidations occurred in the last 24 hours, with $22.82 million coming from long positions. This indicates a rise in profit-taking and short-term caution among traders.
At technical levels, XRP is still trading above critical support. The $2.23 zone is aligned with the 50-, 100-, and 200-period EMAs, which could serve as a strong buffer against further price declines.
The Relative Strength Index has eased to 63.17, down from overbought territory, signaling reduced bullish momentum. If it goes down towards the neutral midline, then that might imply a further correction is likely.
Source: Tradingview
However, the MACD indicator still has a bullish crossover. Green histograms back up the concept that the buyers continue to have some say in the process, especially if the price manages to sustain the level of $2.40.
The important levels of resistance to consider are $2.80 and the psychological level of $3.00.
The XRP rally has taken a weakening course after the meeting of the SEC round table, as traders are digesting a potential shift in regulations. Although the fundamental outlook seems to stabilize more with legal problems resolved for Ripple, the short-term market reflects a take-it-easy approach.
Regulatory clarity will be under watch by investors as it continues to take shape.
Also Read: XRP Must Hit This Price to Flip Bitcoin as Largest Cryptocurrency
