XRP’s price action has been lackluster recently, despite the U.S. Securities and Exchange Commission (SEC) officially acknowledging Bitwise’s application for an XRP exchange-traded fund (ETF). This recognition by the SEC was seen as a significant milestone for XRP holders and investors who hoped for more institutional adoption of the cryptocurrency. However, XRP’s price failed to show enthusiasm in response, continuing its downward trajectory.

XRP has been caught in a bearish trend for the past several days, struggling to hold above key support levels. On February 18, after the SEC’s acknowledgment of Bitwise’s filing, XRP’s price continued its decline, trading near the lower boundary of a symmetrical triangle pattern that has been forming for weeks. Despite these regulatory advancements, market sentiment around XRP remains tepid, and the cryptocurrency is now at a critical juncture.

The symmetrical triangle pattern that XRP has been trading within since January 16 suggests a period of consolidation. Typically, these patterns indicate a reduction in volatility, but they also show that the market is at a crossroads. The price movements within this triangle reflect the conflict between buying and selling pressure, and recent developments point to a growing bearish bias.

XRP’s price has continued to approach the lower trendline of this triangle, indicating that selling pressure is rising. If the altcoin breaks below this support level, a bearish breakout could occur, further pushing the price downward. This is particularly concerning given that XRP is now trading below its 20-day exponential moving average (EMA), a key indicator that reflects the short-term trend in the market.

The 20-day EMA is often used to identify the general direction of the market. When the price is trading below the EMA, it signals a downtrend, which further supports the bearish outlook for XRP. The lack of upward momentum and its positioning beneath the 20-day EMA suggest that XRP is in a weakened state and may be unable to rally in the near term.

Additionally, the Super Trend indicator places dynamic resistance at $3.12, further confirming the ongoing bearish market sentiment. This indicator is known for signaling the prevailing trend; in this case, it indicates that selling pressure remains dominant, and it may be difficult for XRP to break through this resistance level. The current technical setup makes it clear that unless there is a significant shift in market sentiment, XRP is at risk of further declines.

At the time of writing, XRP is facing a make-or-break moment. If the price fails to hold the current support level and breaks below the lower trendline of the symmetrical triangle, a sharp decline toward $2.24 could be in the cards. This potential drop could lead to significant losses for investors who have been holding the coin in hopes of a recovery.

However, it is important to note that a shift in market conditions or a surge in demand could invalidate the current bearish outlook. If XRP sees a sudden rise in demand or market sentiment improves, the price could potentially rally, breaking through the $3.12 resistance and resuming its upward movement. The success of the ETF filing or any positive news surrounding the coin could trigger such a change in sentiment.

In conclusion, XRP’s price faces significant pressure as it struggles below key support levels and technical indicators point to a potential bearish breakout. While the ETF filing progress is a notable development, it has not yet fueled the desired price action. XRP’s price remains at a critical point, and its ability to hold support or break resistance will determine its next move in the market.