XRP (XRP-USD) fell below key support levels this week as a stalled Senate vote extended the U.S. government shutdown, dimming hopes for a rally tied to upcoming XRP-spot ETF decisions. With deadlines approaching and Washington at a standstill, traders are scaling back expectations.
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The failed funding vote has cast uncertainty over the SEC’s ability to review and approve spot ETFs, while broader crypto sentiment remains fragile. Meanwhile, Ripple continues to announce institutional partnerships, though political headwinds are limiting their market impact.
XRP ETF Delays Weigh on Sentiment
A ninth failed Senate vote on a GOP funding bill left the U.S. government shutdown in place for at least 15 days, meaning key ETF decisions could slip into November. Grayscale’s XRP-spot ETF faces a final deadline on October 18, but staff furloughs at the SEC have left critical reviews on hold.
XRP dipped as low as $2.4124 on October 15, falling 3.72% for the day and extending losses from the day before. The token remains under its 50-day and 200-day EMAs, reinforcing bearish pressure. In total, XRP is down 14.71% in October, undermining what many had hoped would be another strong “Uptober.”
Institutional Developments Go Unnoticed
Despite the regulatory gridlock, Ripple continues to build out institutional partnerships. Most recently, Ripple Custody announced a deal with South Africa’s Absa Bank, one of the region’s largest financial institutions.
“Last month, we announced RLUSD live on the African continent… and today so is Ripple Custody through our partnership with Absa Bank,” Ripple President Monica Long said.
Some in the industry believe the announcement hints at deeper strategic moves. Pro-crypto lawyer Bill Morgan commented, “This collaboration between Ripple and a pan-African Bank is not only about custody, but seems to be connected to broader demand for Ripple’s payment solutions in Africa.”
Still, the market is more focused on what’s not happening, like progress on ETF approvals and pending legislation.
Political Gridlock Freezes Market Structure Progress
The extended shutdown is not only delaying ETF launches. It has also stalled crypto-focused legislation, including the long-awaited Market Structure Bill. Ripple’s pending application for a U.S. bank license is similarly caught in limbo, with lawmakers at an impasse.
This lack of movement has weighed on sentiment across the crypto space. XRP, in particular, has been affected due to its close ties to regulatory outcomes. Until the political environment stabilizes, analysts say XRP is unlikely to break out of its current range.
Key Price Levels to Watch
Technically, XRP continues to hover just above the $2.4 support zone. A break below this level would open the door to $2.0 or even $1.9. Resistance remains at $2.7 and $3.0, with the 200-day EMA at $2.6296 posing a key barrier.
The bearish case includes further delays to ETF approvals, rejection of Ripple’s bank license, or lack of clarity from major institutional players like BlackRock (BLK). Conversely, a sudden end to the shutdown or positive regulatory signals could shift momentum quickly.
XRP may be building long-term momentum through real-world partnerships, but in the short term, price action remains tied to Washington.
At the time of writing, XRP is sitting at $2.4453.
