XRP Price Consolidates Near $2.40 as Spot ETF Listing Hopes Fade

The Ripple (XRP) price traded near $2.42 on May 21, consolidating after last week's brief move toward $2.56.

The price of Ripple (XRP) traded in a narrow range of $2.40 to $2.42 on Monday, May 21. The cryptocurrency was consolidating after a brief move toward $2.56 last week.

Despite Bitcoin stabilizing above $102,000 and Ethereum holding near $2,650, XRP struggled to break higher. The cryptocurrency’s price action remained range-bound for over a week, with a Fib level and resistance capping upside attempts and no strong catalyst forcing a breakout.

The broader cryptocurrency market showed signs of fatigue after last week’s Consumer Price Index-induced rally. While memecoins continued to attract short-term flows, large-cap cryptocurrencies saw declining spot volumes and little change in open interest. On-chain metrics also suggested reduced trader engagement, with no major accumulation spike among large wallet cohorts.

Despite the subdued price action, interest in XRP remained elevated thanks to renewed speculation around a potential spot exchange-traded fund listing. Over the weekend, several market participants shared screenshots of ETF-related tickers appearing briefly on a major data aggregator platform.

The listings, quickly removed afterward, reignited hopes of regulatory progress and renewed institutional exposure to XRP. However, no official announcement followed the event, and the cryptocurrency’s price failed to react significantly.

Now, attention shifts toward deeper structural developments, particularly how Ripple’s legal status and token economics could impact the mid-term outlook.

SEC postpones 21Shares’ XRP ETF decision

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on 21Shares’ spot XRP ETF proposal. According to a press release on May 20, the regulatory body needs more time to assess whether the fund complies with protections against fraud and market manipulation under Section 6(b)(5) of the Exchange Act.

The fund, named 21Shares Core XRP Trust, is designed to track the CME CF XRP-Dollar Reference Rate, with Coinbase Custody acting as the asset holder. The proposal was initially submitted on March 11, falling within the SEC’s standard 70-day review window.

The postponement follows earlier delays for similar filings from Grayscale and Franklin Templeton. The SEC has opened a 21-day public comment period and a 35-day rebuttal window, suggesting a final decision may not arrive before late June or early July. Bloomberg analysts place the timeframe for approval even further out, specifically early Q4 2025, given the unresolved legal status of XRP.

The delay stems partly from the SEC’s ongoing appeal in the Ripple lawsuit, which questions whether XRP should be classified as a security. The appeal remains pending with Judge Analisa Torres, with a status update due to the Second Circuit by June 15. This case continues to cast a shadow over ETF approvals, highlighting the agency’s cautious stance on altcoin-based funds.

Reactions on social media were mixed. While James Seyffart noted the delay aligns with expectations, users like RippleXrpie and Nico Cabrera highlighted the SEC’s action as a pause and pointed out its potential to be extended further. Eleanor Terrett also confirmed a similar hold on Franklin Templeton’s proposal.

Following the news, open interest in XRP futures declined, and spot volumes softened. Despite the short-term weakness, Polymarket bettors still assign an 83% chance of ETF approval by year-end. The CME’s May 19 launch of XRP futures adds a bullish counterweight, though XRP may remain trapped below $2.60 until regulatory clarity improves.

As the SEC continues to evaluate the 21Shares application, the fate of the first XRP ETF hangs in the balance, with implications for the broader cryptocurrency market.

Structure builds bullish tension

The price of XRP continues to consolidate within a falling wedge pattern, a formation that traders often consider bullish due to its tendency to resolve higher. Two downward-sloping trendlines define the wedge pattern, with the upper boundary rejecting each failed breakout since March and the lower trendline catching shallow pullbacks.

The apex of the wedge is fast approaching as the price remains inside the wedge, indicating that a confirmed breakout has not yet occurred.

The wedge formation began forming after XRP’s vertical rally stalled near the $3.25 level. Since then, the price has posted lower highs and higher lows in a narrowing structure, while volume gradually declined—a classic wedge characteristic.

Traders typically calculate breakout targets by measuring the height of the wedge at its widest point and projecting that distance upward from the breakout level. In this case, the projected target for the Ripple token is near $3.80, a spike of over 61% from current levels, pending confirmation of a close above wedge resistance.

The weekly 20-EMA sits near $2.21 and continues to act as dynamic support. The $2.14 zone offers additional structural