XRP is once again testing investor patience, falling more than 6% this week as bearish momentum builds. With the token hovering near key support levels, traders are watching closely for signs of a larger breakdown—or a sudden reversal.
At the heart of this week’s volatility is Ripple’s growing stablecoin presence, RLUSD, which has surged toward a $500 million milestone in market cap.
While RLUSD adoption signals deepening infrastructure around Ripple’s ecosystem, it has yet to translate into bullish momentum for XRP itself.
XRP Hits Technical Roadblock
On Thursday, XRP was trading around $2.18, struggling to hold support near $2.20. Analysts warn that if this level breaks, XRP could spiral toward $2.00 or lower—testing levels not seen since early April.
According to Brave New Coin analysts, a sustained drop below $2.29 would confirm a bearish breakdown from its multi-week consolidation zone.
XRP’s recent failure to regain $2.30, a critical resistance level, has added to downside pressure. The Relative Strength Index (RSI) has slipped below 40, suggesting weak bullish momentum and a lack of short-term buying interest.
RLUSD’s Rise Isn’t Boosting XRP—Yet
Ripple’s recently launched stablecoin, RLUSD, is quickly gaining traction. Total value locked in RLUSD is nearing $500 million, signaling growing institutional and DeFi adoption across Ripple-affiliated platforms.
But while RLUSD’s rise underscores confidence in Ripple’s technology, it hasn’t directly boosted XRP demand—yet. Traders remain cautious as they await concrete utility crossovers between RLUSD expansion and XRP liquidity or price action.
What to Watch Next
- $2.20 support: A decisive close below this level could trigger further losses.
- RLUSD adoption: If the stablecoin continues to grow past $500M, XRP could see a delayed uplift if ecosystem synergies emerge.
- Volume & RSI trends: Bullish divergence is lacking, but a spike in volume near current lows could indicate capitulation and bottoming.
The Bottom Line
XRP remains under pressure, even as Ripple’s ecosystem shows signs of strength.
Until XRP can reclaim key resistance levels and regain buying interest, short-term traders should brace for further downside.
However, growing momentum around RLUSD could offer a longer-term tailwind—if XRP proves integral to the stablecoin’s continued expansion.
FULL COVERAGE: XRP | Cryptocurrency Market
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