SEC Delays and Weak Market Data Raise Concerns

The XRP price has surged by more than 40% since early April lows to trade at $2.29 on May 28th. But the price remains over 30% below its$3.40 Q1 2025’s peak, and moving broadly sideways for over a week.

Also, network activity declining persistently from late 2024’s high highlights investors’ confidence declining, and raises strong concerns about XRP crypto’s ability to advance higher.

As a result, analysts across the crypto community are warning that the XRP price could be at risk of falling unless investors rapidly increase.

Another major concern is that Institutional demand for XRP investment products appears to be waning, and even XRP crypto’s derivatives data leans bearish.

The extended consolidation points to a major worry among investors that in the coming days, the XRP price is likely to drop from the current levels. Keep reading to know more.

Why XRP Price Has A Strong Bearish Vibe Than Ever In Q2?

A Monday CoinShares report shared grave news for XRP investors that demand is waning, as CoinShares XRP ETP posted $37.2 million outflows, which has broken an 80-week inflow streak. This brought its MTD flows to $28.6 million.

The exact reason for these outflows remains unclear, but these outflows aligned with the latest XRP ETF’s approval got delayed by the SEC. This indicates a decreased institutional appetite for XRP investment products. Thus, it is a strong bearish catalyst for the upcoming XRP price action.

The decreasing investors’ confidence is not only visible in Coinshares data but has been long visible in its active address metric, too. This metric had a positive correlation with XRP price, but the decline in active addresses often has a bearish impact on the asset, potentially leading to price declines.

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Without A Catalyst XRP Price Fall Is Imminent

Moreover, in derivatives data, the XRP’s open interest has fallen, which clearly means traders are closing their contracts, adding to the low activity and increasing the odds of a downtrend. As there is insufficient capital and enthusiasm to drive prices northwards.

Also, XRP funding rates have been sideways since Q1 2025, reflecting a lack of strong directional bias, as a balance between long and short positions sends an asset price into a consolidation stage, and this is what we are witnessing in XRP for such a long time now.

At present market needs a clear catalyst for a breakout and a strong directional bias among market participants. Without renewed interest, XRP price could slide back into a downward trend.

Additionally, the Ripple vs. SEC lawsuit still remains a major storyline for XRP’s price success in the long term. Although this lawsuit news has built a lot of uncertainty for the Ripple market, despite that, market participants believe that a clear resolution now could release a fresh momentum and could become a stepping stone for XRP ETFs to pass the SEC.

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