The XRP price remained in a deep bear market after falling sharply from the year-to-date high of $3.6500 to the current $2.0. This crash has pushed its market cap to $120 billion from the year-to-date high of nearly $200 billion. So, will the Ripple price rebound or continue the downward trajectory?
XRP price technical analysis suggests more downside
The three-day chart shows that the XRP price come under intense pressure in the past few months, moving from a high of $3.6500 in July to the current $2.
It has tumbled to the 50% Fibonacci Retracement level. At the same time, the token is nearing a death cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. Such a move will lead to more downside.
XRP price has also formed a double-top pattern at $3.3900 and a neckline at $1.6278, its lowest level on April 7. This neckline has coincided with the 61.8% Fibonacci Retracement level.
Therefore, the most likely scenario is where the XRP price will continue falling as sellers target the key support at $1.6278, which is about 20% below the current level. A drop below that level will point to more downside, potentially to the psychological level at $1.50.
On the flip side, a move above the 38.2% retracement level will invalidate the bearish outlook and point to more gains, potentially to the psychological level at $3.
Ripple price has crashed despite key news
The ongoing XRP price crash has coincided with the ongoing performance of Bitcoin and other altcoins. The Bitcoin price has dropped from $126,200 earlier this year to the current $90,000. Other tokens like Cardano, Solana, and Polygon have all crashed in the past few months.
The ongoing headwinds in the crypto industry have outweighed the important Ripple news.
For example, the Office of the Comptroller of the Currency (OCC) granted Ripple Labs a bank charter last Friday, a move that will help it offer more services to other companies. For example, the bank charter will help it save money by moving its Ripple USD (RLUSD) assets from BNY to its new bank.
HUGE news! @Ripple just received conditional approval from the @USOCC to charter Ripple National Trust Bank. This is a massive step forward – first for $RLUSD, setting the highest standard for stablecoin compliance with both federal (OCC) & state (NYDFS) oversight.
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Meanwhile, more data shows that demand for XRP ETFs remains at an elevated level, with data showing that inflows jumped to nearly $1 billion a few weeks after their launch. XRP ETFs have become some of the fastest-growing funds in the crypto industry.
XRP has had some other positive news in the past few weeks, including the recent investment by Citadel and Fortress. It also completed the acquisitions of four companies, GTreasury, Palisade, Rail, and Hidden Road.
These acquisitions are meant to provide infrastructure in the financial services industry, including creating utility for the Ripple USD (RLUSD) stablecoin.
Meanwhile, Ripple partnered with AMINA Bank, a move that will see it using its technology for real-time cross-border solutions. In a statement, the Chief Product Officer at the bank said:
“Our clients need payment infrastructure that can handle both fiat and stablecoin rails simultaneously, but traditional correspondent banking networks weren’t designed to support this.”
The XRP price has also stagnated despite the ending of the Securities and Exchange Commission (SEC) vs Ripple case, and the recent statement by Hex Trust that will see it expanding it to Solana and Ethereum.
It is common for a cryptocurrency with solid fundamentals to underperform the market when there is a bear market. For example, Polygon price has slumped to a record low despite its number of transactions and active addresses soaring to a record high.
Similarly, Avalanche (AVAX) price has dived despite its rapid network growth and partnerships with key companies like Toyota and Skybridge Capital.
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