NOIDA (CoinChapter.com) — Despite Favorable Technicals, XRP Price Underperforms BTC and ETH

Despite a favorable technical setup and heightened ETF expectations. XRP price surged to a local high near $2.31

NOIDA (CoinChapter.com) – Among the leading cryptocurrency tokens, Ripple’s XRP had a less impressive performance compared to Bitcoin and Ethereum despite a favorable technical setup and heightened expectations for an ETF.

After breaking above a falling wedge pattern on April 27, XRP price surged toward a local high near $2.31 on April 29. However, sellers quickly regained control, causing XRP price to slip back.

The lack of follow-through from buyers after the breakout signaled caution among traders. Both Bitcoin and Ethereum continued their upward trajectory. BTC held above the $94,000 mark, extending April gains amid consistent spot ETF inflows and strong institutional interest.

Meanwhile, ETH stabilized above $1,800 after bouncing from monthly lows. Both assets benefited from mature market infrastructure, approved spot ETFs, and improved investor confidence—three key ingredients that XRP still lacked.

As Bitcoin and Ethereum continue to trade with ETF tailwind, highlighting the structural disadvantage of XRP, whose token is still subject to SEC scrutiny.

Technical Analysis Shows Lack Of Conviction As XRP Price Stalled

After breaking out of a multi-month falling wedge, XRP’s price failed to generate strong follow-through, even as the breakout zone, near the $2.17–$2.20 band, pushed the token toward $2.31.

However, the move stalled just below the 0.5 Fibonacci retracement level, which is around $2.23, and failed to challenge the stronger resistance at $2.5. The token is now trading sideways near $2.23, showing early signs of exhaustion and hesitation among buyers.

Above, immediate resistance is now at $2.49. A clean break above that level could extend the rally toward the $2.86 zone, marked by the 0.786 Fib retracement.

On the downside, support is now at $1.97, which aligns with the 0.382 Fib level and below the 50-day EMA. Losing this zone could open the door to a deeper correction toward the $1.65 region, which coincides with the 0.236 Fib retracement.

The Relative Strength Index (RSI) remains flat near 55, indicating a neutral bias. Volume has also decreased after the breakout, showing a lack of conviction.

As XRP failed to maintain momentum after escaping a technically bullish structure, it suggests that traders remain unconvinced. Unless bulls can reclaim $2.49 with strong volume, XRP risks slipping back into a consolidation phase.

SEC Rejected WisdomTree’s Spot XRP ETF Application

The technical indecision in the Ripple token’s price is mirrored by the regulatory limbo surrounding its ETF ambitions.

On April 30, the SEC formally rejected WisdomTree’s application for a spot XRP ETF, citing the same concerns it has raised since 2022, despite a new administration and a more crypto-aligned SEC chairman, Paul Atkins.

The rejection highlights the agency’s skepticism toward XRP’s market infrastructure, which persists despite changes in the political landscape. The SEC's decision is based on three key objections.

First, the agency argues that XRP’s spot markets are still vulnerable to manipulation due to fragmented liquidity and inconsistent oversight. Most trading takes place on offshore platforms with limited surveillance, making it difficult for U.S. exchanges to ensure fair pricing.

Second, the lack of any formal surveillance-sharing agreement between a U.S. exchange and a major XRP trading venue violates one of the SEC’s main requirements for approving spot ETFs.

Third, the agency mentions investor protection risks, particularly concerning XRP’s price volatility and susceptibility to rapid declines—concerns that directly reflect the weakness in the current technical setup.

However, these arguments seem increasingly out of sync with the broader political narrative. With Trump back in office and Atkins known for criticizing excessive regulation, many anticipated swift approval for XRP’s ETF.

Futures-based XRP ETFs, including leveraged and inverse products, have already been approved. But the SEC continues to block a spot ETF despite the availability of futures products.

This contradiction raises questions about the agency’s internal procedures and its unwillingness to treat the Ripple token on the same terms as Bitcoin and Ethereum, both of which have approved spot ETF structures.

Nevertheless, the BTC and ETH spot ETFs also faced significant delays, which is a silver lining for those hoping to see an XRP ETF approved.