The XRP price rally over the past three days could face a setback as it approaches the key resistance level of $2.26.

This level coincides with the 100-day EMA and the 50% Fibonacci retracement, marking a critical point for the next move. Although short-term indicators point to potential gains, the overall outlook remains uncertain as traders closely watch key regulatory developments.

Following a rebound earlier this week, XRP reached a four-day high during today’s European session. However, the resistance at $2.26 has hindered further gains. This level has proven challenging to surpass, with selling pressure intensifying each time the price nears it. 

XRP's limited price growth also aligns with the ongoing regulatory uncertainty in the U.S. The SEC has postponed decisions on several XRP ETF proposals, leaving the approval process in a state of limbo as Paul Atkins awaits confirmation as the new SEC Chair. Industry experts believe these delays are procedural rather than indicative of a change in stance, with the final deadlines for ETF approvals still months off.

From a technical perspective, the 4-hour RSI, which was in bearish territory earlier this week, has now shifted into bullish territory, signaling increasing upside momentum. However, the daily RSI remains bearish, highlighting the contrast between short-term optimism and a still-weak longer-term trend.

A breakout above $2.26 could lead to further gains toward $2.32, while failure to surpass this level may result in a pullback to $2.20. With mixed technical signals and ongoing regulatory developments, traders may take a cautious approach, waiting for the next major catalyst.

Institutional interest in XRP has grown following Franklin Templeton's filing for an XRP ETF. XRP saw a 15% rebound from $1.9077 to $2.216, but momentum slowed down at $2.250.