Ripple (XRP) price is up slightly today as the crypto market rebounds after the recent crash caused by regulatory uncertainty and an interest rate hike by the Federal Reserve.
The recovery also coincides with rising inflows to XRP ETFs after the chair of the US Securities and Exchange Commission (SEC), Paul Atkins, vowed to bridge the regulatory gap in the crypto industry despite the CLARITY Act bill failing to pass.
SEC Chair Commits to Crypto Regulation After CLARITY Setback
In an X post, Atkins commended the efforts taken by Congress and other stakeholders towards the CLARITY Act bill. However, he noted that even without legislation, the SEC was still capable of regulating the crypto industry.
“We will act decisively within the SEC’s statutory authority to deliver certainty for American investors and for the entrepreneurs shaping our technological future,” Atkins said.
Atkin’s recent X post comes days after he said that the SEC will continue with Project Crypto regardless of whether the Senate advances the CLARITY bill or not.
As earlier reported by CoinGape, the crypto bill failed after only securing 49 votes in favor, with 50 senators voting against it. The bill needed 60 votes to pass, with the failure pushing XRP price lower.
The CFTC Chair, Michael Selig, also echoed Atkin’s remarks in an X post, saying the outcome of the vote was “unfortunate,” and that the CFTC was “ready to ship its rules for the new frontier of finance.”
XRP ETFs Outperform All Crypto ETFs
Data from SoSoValue shows that there were inflows of $3.5 million to XRP ETFs on September 16 despite the price dropping. These inflows came from the Franklin Templeton XRP ETF (XRPZ).
XRP also had the highest inflows among all crypto ETFs on September 16. Bitcoin and Ethereum ETFs had outflows of $295 million and $224 million, respectively.
Solana (SOL) and Hyperliquid (HYPE) were the only other US ETFs that posted inflows of $836,000 and $1.67 million, respectively.
XRP ETFs have now seen ten straight days of inflows despite bearish pressure coming from the lack of regulatory certainty and the Federal Reserve’s monetary tightening policy.
XRP Open Interest Drops Below $1B
Data from CryptoQuant shows that XRP’s open interest has dropped from $1.128 billion in August to $871 million in less than one month.
The OI on Binance also dropped from $558 million to $423 million, while the same metric on Bybit moved from $379 million to $291 million.
This drop in OI suggests that many futures traders have closed their derivatives positions on XRP, or some of them have been liquidated.
Analyst Arab Chain notes that this drop in OI does not suggest that the future XRP price outlook is now bearish. Instead, it suggests that traders have reduced their exposure to XRP or they are repositioning
Still, the OI-weighted funding rate for XRP on Binance remained positive, suggesting that there are still more long buyers than short sellers.
XRP Price Drops Below 200W EMA as Momentum Weakens
XRP price is down by 1.79% to trade at $1.30 at the time of writing and with $3.9 billion in trading volume per CoinMarketCap data.
Despite this slight gain, XRP price remains below the 200-week EMA of $1.36, suggesting that the long-term trend is still favoring bears.
The RSI reading of 48 also suggests that the momentum is now favoring bears. The RSI line that is also tipping south and has created a lower low, also suggests that selling pressure is now outpacing buying pressure.
If the downtrend continues, XRP price could drop to the support at $1.04.
XRP will confirm a trend reversal if it moves above the resistance at $1.36, after which the price could reach $1.52.