The US Securities and Exchange Commission (SEC) has officially recognized Bitwise’s filing for an XRP exchange-traded fund (ETF) on February 18. Despite this regulatory milestone, the reaction in XRP's price has been lackluster, as it continues on a downward trend.

XRP, the altcoin, appears set to breach a crucial support level with a bearish bias strengthening.

Acknowledging various XRP ETF applications in the previous week, the SEC confirmed filings from Grayscale and CBOE, as well as Bitwise's submission. But XRP's price response to these developments has been subdued, with the cryptocurrency trading near the lower trend line of a symmetrical triangle pattern.

The chart analysis of XRP/USD reveals that it has been confined within the symmetrical triangle pattern since hitting an all-time high of $3.39 on January 16. This consolidation phase indicates decreased volatility amidst bearish pressures, suggesting the possibility of a bearish breakout if the support level fails.

With selling pressure mounting, XRP is currently trading below its 20-day exponential moving average (EMA), signaling a downtrend.

The Super Trend indicator shows dynamic resistance around $3.12 for XRP, indicating a bearish trend and potential further downside. If selling pressure persists, XRP might break below the lower trend line of the symmetrical triangle pattern, dropping to $2.24.

On the flip side, a positive shift in market sentiment could invalidate the bearish scenario. A surge in XRP demand could propel its price above the upper trend line of the symmetrical triangle and challenge the dynamic resistance at $3.12.