XRP price drops 2.6% to hit $2.2 on Thursday as Ripple’s $5 billion rejected offer to acquire Circle coincides with bearish ETF-related sentiment.
Ripple (XRP) sinks as SEC delays altcoin ETF decisions
XRP extended its weekly losses on Thursday, falling 2.6% to under $2.20 as major altcoins suffered considerable losses.
The drawdown came after the U.S. Securities and Exchange Commission (SEC) announced it would postpone decisions on all seven pending spot altcoin ETF applications.
The delay triggered immediate bearish sentiment across the crypto market, with Dogecoin (DOGE), Avalanche (AVAX), and Solana (SOL) also registering intraday losses of roughly 3%, according to Coingecko data
The synchronized pullback among altcoins highlights investor unease, particularly around assets with ETF filings currently under SEC review. While Bitcoin and Ethereum remained relatively stable, market data showed a distinct wave of outflows from tokens viewed as ETF contenders.
As seen above the 2.6% Ripple price dip saw its market capitalization slip below the $130 billion mark, wiping out short-term gains from late April. As regulatory uncertainty persists, risk-averse traders appear to be reducing exposure to altcoins vulnerable to SEC oversight.
Ripple’s failed $5B Circle offer deepens investor anxiety
Adding to the day’s market headwinds, Bloomberg reported on Wednesday that Ripple had made an unsolicited acquisition offer of between $4 billion and $5 billion to buy stablecoin issuer Circle. The bid was reportedly rejected as undervalued.
According to anonymous sources cited in the report, Circle—which issues the U.S. dollar-pegged stablecoin USDC—declined the proposal, stating the valuation did not reflect its current growth trajectory and IPO ambitions.
The disclosure of Ripple’s acquisition interest came just weeks after Circle filed a fresh prospectus for an initial public offering.
Circle, valued at $9 billion in a 2022 SPAC deal attempt, is the issuer of the world’s second-largest stablecoin and a key rival to Ripple’s newly launched RLUSD token.
Ripple, which has been expanding its presence in blockchain payments and stablecoin markets, has remained publicly quiet about the deal, with CEO Brad Garlinghouse previously indicating that future acquisitions were “on the table.”
As Circle pushes ahead with its IPO plans and market valuation, Ripple’s attempt to acquire a major player signals strategic urgency—but also hints at friction in executing that strategy. With altcoin sentiment already rattled by regulatory delays, the timing of Ripple’s bid and its rejection amplified downside pressure on XRP price action in the days ahead.
XRP Price Forecast Today: Bulls Eye $2.35 as Support Holds Above 50-Day SMA
XRP price forecast today leans moderately bullish following a resilient bounce from the $2.19 intraday low, suggesting buyers are defending the short-term trend.
The daily candle closed at $2.2199, up 1.33%, holding above the 50-day simple moving average (SMA) at $2.1914. This level now acts as immediate support, helping anchor bullish sentiment.
The RSI reading of 53.83 indicates a slight positive bias, reinforced by the RSI moving average at 53.00, with the gap between them subtly widening, often a precursor to major breakout
Volume remains moderate at 6.73 million, hinting at cautious accumulation rather than breakout conviction. Price has remained supported above the ascending trendline drawn from early April lows, while the 200-day SMA overhead at $2.39 continues to cap upside potential. A clean break and close above $2.25 could trigger follow-through momentum toward $2.35. However, failure to reclaim this resistance in coming sessions may expose XRP to a pullback toward $2.10. Still, the preservation of higher lows suggests the broader structure remains intact and tilts the bias slightly in favor of the bulls.
The post XRP Valuation Tumbles Below $130B amid Ripple’s Surprise $5B Bid to Buy Circle (USDC) appeared first on CoinGape.
