A decision on the proposed Franklin XRP Fund, a spot XRP exchange-traded fund submitted by asset manager Franklin Templeton, has been postponed by the U.S. Securities and Exchange Commission.
In its most recent filing, it was stated that the SEC has extended the review period to June 17, moving it from the original deadline of May 3. The SEC explained that more time was needed to evaluate the application and address the regulatory concerns involved.
The proposal was filed by Franklin Templeton, which manages over $1.5 trillion in assets, on March 13 through the Cboe BZX Exchange. On March 19, the filing was officially published in the Federal Register for public comment by the SEC.
Under current regulations, up to 90 days can be taken by the SEC to approve, deny, or extend its decision. In this instance, a delay was chosen.
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 increasing market expectations, caution was shown by XRP’s price. Currently, XRP is being traded around $2.22, with little volatility observed and a significant decline in volume. According to data from crypto, trading volume has dropped by 32% in the past 24 hours, suggesting that traders are awaiting clearer signals. With a relative strength index (RSI) of 55, neutral momentum is indicated.
A more optimistic picture is presented by moving averages. Currently, XRP is being traded above nearly all key short and mid-term moving averages. The moving average convergence/divergence signals a possible upward movement, though indecision is also shown by the majority of oscillators.
If bullish momentum is maintained and higher support above $2.30 is reclaimed by XRP, the next resistance will be encountered near $2.50, with a breakout potentially targeting the $2.85–$3.00 range. Conversely, a decline towards $2.00 or, in the worst case, back to $1.85 may occur if the current consolidation breaks downward.
