XRP Sees Slight Gains Amid Regulatory Developments and Market Volatility

XRP is currently trading around $2.28, showing a slight upward trend in line with broader cryptocurrency market sentiment. This comes after a U.S. court blocked tariffs imposed by former President Donald Trump.

Court Ruling on Trump’s Tariffs Boosts Market

A Reuters report indicates that the Court of International Trade ruled that the U.S. Constitution grants Congress the exclusive power to regulate trade with other countries. This decision limits the president’s ability to use emergency powers to override this authority for economic protection.

SEC Announces DeFi Roundtable Agenda and Panelists

The Securities and Exchange Commission (SEC) has announced the agenda and panelists for its upcoming roundtable on June 9. The event, titled “DeFi and the American Spirit,” will be held at the SEC headquarters in Washington, D.C.

The panel will consist of nine members, including Jill Gunter from Espresso Systems, Omid Malekan from Columbia Business School, Rebecca Rettig from Jito Labs, and Peter Van Valkenburgh from Coin Center, among others.

“DeFi exemplifies the promise of cryptocurrencies, as it allows individuals to interact without intermediaries,” said Commissioner Hester M. Peirce, head of the SEC’s Cryptocurrency Task Force. “I look forward to learning from the panelists about how we can create a regulatory environment in which DeFi can thrive.”

Technical Analysis: XRP’s Potential Breakout

Despite an early May rally, XRP’s price has faced a significant downtrend in recent weeks, potentially extending losses toward $2.20. The remittance token is currently trading below key moving averages on the 4-hour chart, including the 50-period, 100-period, and 200-period Exponential Moving Averages (EMAs). This reinforces the short-term bearish momentum, further emphasized by the Relative Strength Index (RSI) falling below the 50 midline.

If the Moving Average Convergence Divergence (MACD) indicator issues a sell signal, with the blue MACD line crossing below the red signal line, key liquidity areas around $2.20, $2.21, and $2.00 will be closely watched.

The descending wedge pattern on the chart suggests that XRP could reverse its downtrend. This bullish pattern is characterized by two downward-sloping trendlines converging, indicating decreasing volume and selling pressure.

Traders are looking for a breakout above the upper trendline, accompanied by increased trading volume, to confirm the descending wedge. The target of 14% at $2.63 is determined by measuring the distance between the widest points of the pattern and extrapolating above the upper trendline.

Derivatives Data Indicates Bearish Sentiment

XRP’s derivatives data shows a decrease of approximately 4.6% in open interest (OI) to $4.67 billion over the past 24 hours. This coincides with an almost 50% increase in volume to $4.45 billion, suggesting a developing bearish bias as traders close positions in futures and options.

The decline in OI alongside increased volume supports a notable rise in long position liquidations, reaching $8.5 million in the last 24 hours, compared to approximately $713,000 in short liquidations.

Given this situation, traders may exercise caution amid anticipated volatility, particularly with the upcoming release of the Personal Consumption Expenditures (PCE) Price Index inflation data on Friday.

Key Takeaways

• XRP’s Price: Currently around $2.28, showing slight gains.
• Regulatory Impact: Court ruling on Trump’s tariffs boosts market sentiment.
• SEC Roundtable: Upcoming event on DeFi and regulatory environment.
• Technical Outlook: Potential breakout from descending wedge pattern.
• Derivatives Data: Bearish sentiment indicated by declining OI and increased long liquidations.

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