XRP drops 3% as Bitwise SEC filings show intention to launch first US XRP Spot ETF

• XRP shed 3% of its value on Wednesday, trading at $0.5881.
• Bitwise files S-1 with the SEC, confirming its intention to register the first XRP Spot ETF in the US.
• XRP tests support at $0.5946, risks falling to 50-day EMA at $0.5531.

Ripple (XRP) lost value on Wednesday, even as asset management giant Bitwise affirmed its intention to list the first Spot XRP ETF in the United States. Bitwise has filed its S-1 filing, a crucial step in the process of registering a Spot crypto ETF with the Securities & Exchange Commission (SEC).

Daily Digest Market Movers: Bitwise takes over XRP Spot ETF filing process on Wednesday

• XRP Spot ETF could debut in the US if asset manager Bitwise receives approval from the US SEC.
• The firm has filed its S-1 filing, stating its intention to launch the first Spot ETF for the XRP Ledger’s native asset.
• The S-1 filing is an initial registration form considered a regulatory requirement for securities that meet the appropriate criteria in the US. The filing is made before the securities product is approved and then listed on a national stock exchange.
• In an associated press release, Bitwise CEO Hunter Horsley said:

“At Bitwise, we believe blockchains will introduce new apolitical monetary assets and permissionless applications for the 21st century. That’s why, for the past seven years, we’ve been helping investors tap into opportunities in the space, and we’re excited to continue this work with our filing for a Bitwise XRP ETP.”

• XRP traders digest ETF news while keeping an eye out for developments in SEC vs. Ripple.
• The trial ended in August 2024, with a ruling that was considered a partial victory for both Ripple and the SEC. However, the regulator is likely to appeal the ruling. This affects XRP holders as the asset may lose its legal clarity.

Technical Analysis: XRP risks falling further

Ripple’s XRP has been in a downtrend for several months, as seen on the XRP/USDT daily chart. The altcoin is trading at $0.5709 after testing the $0.5946 support on Wednesday. The MACD (Moving Average Convergence Divergence) indicator shows that the XRP price trend likely has an underlying negative momentum with the conclusion of the series of green histogram bars.

The MACD line has crossed below the signal line, another sign of a possible trend reversal. XRP could sweep liquidity at the 200-day Exponential Moving Average (EMA) at $0.5564 and extend the 11.9% decline to $0.5026, the lowest since September 6 for XRP.

XRP/USDT Daily Chart

A daily close of the candle above support at $0.5946 could invalidate the bearish thesis. XRP could attempt a rally to $0.6602, the 50% Fibonacci retracement of the decline from the July 2023 high of $0.9380 to the July 2024 low.