XRP has come under pressure amid rumors about potential conflicts of interest in the nomination of Paul Atkins to the SEC, sparking investor concerns and market volatility.
Rumors Around Paul Atkins
This past week, XRP experienced heavy selling pressure, coming close to falling below the critical $2 mark. This decline has resulted in about $220 million in market outflows, possibly due to concerns surrounding Paul Atkins, the new nominee for the SEC Chair. Atkins, a former SEC commissioner, advocates a lighter regulatory approach to cryptocurrency. His significant financial interests in the crypto industry have sparked criticism and suspicions among lawmakers, led by Senator Elizabeth Warren, who expressed concerns about potential conflicts of interest.
Risks of Stricter Crypto Regulations
Traders are concerned that if Atkins' appointment to the SEC Chair position is blocked, a more crypto-unfriendly successor could take the position. This may result in stricter regulations, delaying or even rejecting applications for XRP and other altcoin ETFs. The odds of an XRP ETF being approved by July 31 have declined from 35% to 28%, according to Polymarkets data.
Bearish Trend and XRP Forecast
According to technical indicators, XRP risks falling below the key support level at $2. If the cryptocurrency loses that support, it is expected to drop to $1.50. If the bearish trend continues, XRP could test even lower support levels. However, to secure an upward move to $2.60 and beyond, a significant surge in buying volume will be necessary.
Investors remain cautious about the market situation, waiting for clearer regulatory signals before investing in XRP and other cryptocurrencies. Paul Atkins has committed to selling off his assets that could pose a conflict of interest. As the confirmation process continues, market participants will be closely monitoring the developments.
