XRP retraces towards support as SEC delays Franklin Templeton’s ETF decision

The U.S. Securities and Exchange Commission has postponed its decision on the proposed Franklin XRP Fund, a spot XRP exchange-traded fund submitted by asset manager Franklin Templeton. 

According to its most recent filing, the SEC has extended the review period to June 17, from the initial deadline of May 3. The SEC noted that additional time was required to assess the application and the associated regulatory concerns.

Franklin Templeton, which manages over $1.5 trillion in assets, filed the proposal on Mar. 13, through the Cboe BZX Exchange. The SEC officially published the filing for public comment in the Federal Register on Mar. 19.

Under current rules, the SEC can take up to 90 days to approve, deny, or extend its decision. In this case, it chose to delay.

In the filing, the SEC noted:

“The Commission finds it appropriate to designate a longer period within which to take action… so that it has sufficient time to consider the proposed rule change and the issues raised therein.”

Despite growing market anticipation, XRP’s (XRP) price reacted with caution. XRP is currently trading around $2.22, showing little volatility and a noticeable drop in volume. As per crypto.news data, trading volume is down 32% in the last 24 hours, suggesting traders are waiting on clearer signals. At 55, the relative strength index indicates neutral momentum.

Moving averages present a more optimistic picture. XRP is currently trading above almost all significant short and mid-term moving averages. The moving average convergence/divergence suggests a potential upward push, but the majority of oscillators also show indecision.

If bullish pressure persists and XRP recovers higher support above $2.30, the next resistance lies near $2.50, and a breakout could possibly target the $2.85–$3.00 area. On the other hand, XRP may decline toward $2.00 or, in the worst scenario, back to $1.85 if the current consolidation breaks downward.