SEC Rejects XRP ETF—Mixed Messages Fuel Crypto Backlash as Price Falters Near $4

The U.S. Securities and Exchange Commission has denied another exchange-traded fund proposal tied to XRP, wiping short-term gains and reopening wounds in a crypto community already frustrated by the agency’s shifting guidance. XRP fell more than 6% in the immediate aftermath, yet the token is holding the psychological $3–$4 range that has framed recent price action.

Standing roughly 45% higher than a month ago, XRP now faces immediate resistance just above $4, with $2.45 acting as a last line of defense. Analysts note that a decisive close above $4 could open a path toward $5—a 25% leg up—though on-chain momentum remains muted after the latest regulatory setback.

Criticism of the SEC is intensifying. Industry voices say contradictory statements—vacillating between calls for clarity and abrupt denials—is chilling innovation across the digital-asset space. Meanwhile, traders are rotating capital into altcoins perceived as insulated from U.S. policy shocks, underscoring how quickly sentiment can pivot when regulators provide surprises rather than structure.

For investors, the turmoil is both risk and catalyst: a confirmed break above $4 would re-ignite bullish narratives, while renewed crackdown rhetoric could send XRP back toward the $2.4 handle. Until Washington offers unambiguous rules, the market is likely to judge tokens on technical strength alone, leaving short-term price discovery finely balanced between aggressive upside and regulatory overhang.

Disclaimer: This report is for informational purposes only and does not constitute legal, tax, investment, or financial advice.