XRP Price Forecast: XRP Seems Poised to Lose Its $2 Support Again

XRP (XRP) has gone down by 3% in the past 24 hours and currently stands at $2.12 as the cease-fire agreement brokered by President Donald Trump on Monday put the breaks on what could have been a sell-off but has not improved market sentiment entirely.

XRP reached $1.91 at some point on Sunday after the U.S. bombed three Iranian nuclear facilities and got directly involved in a war that, up until that point, involved only two countries.

The token was propelled to around $2.2 right after the cease-fire was announced but found a ceiling at that level and resumed its descent in the past 12 hours or so.

Ripple Seems Determined to Expand Its DeFi Ecosystem

Ripple has made some interesting announcements lately. Although these have not had a robust impact on the price action yet, they continue to build the necessary blocks to support a brighter future for this blockchain project.

Just two hours ago, the company announced that it partnered with Wormhole – a crypto bridge – to create an XPRL EVM Sidechain that supports multichain asset transfers from and to the Ripple network.

Ripple Official X Account – Source: X.com

The partnership expands the network’s use cases and interoperability. It also unlocks untapped capital inflows from decentralized applications that could now start to support the Ripple blockchain for trading its native asset (XRP) and others.

This announcement builds on the latest support of USDC announced by Ripple. Alongside its native stablecoin, Ripple USD (RLUSD), the Ripple network can now be used to store and transfer stablecoins at a low cost.

Ripple has been busy lately as it seems to be embarked on a journey to expand their ecosystem to accommodate DeFi applications and possibly many other types of assets like meme coins, real-world assets, and payment platforms that rely on its blockchain.

In addition, XRP’s institutional investment vehicles like exchange-traded funds (ETFs), futures, and trusts have been attracting significant capital.

In Canada, multiple XRP-linked ETFs have been listed already and the U.S. could be next. Moreover, the CME Group recently launched its first XRP futures. These are having their best trading day today with a volume of 779 contracts and open interest of 647 (around $70 million at today’s prices).

All Signs Point to a Retest of the $1.91 Support

Looking at the 4-hour price action, we can see that XRP could be once again trapped in a range between $2.1 and $2.23 if this support area holds in the next few hours.

This appears to be a key decisional level for the market as XRP offers a similar upside and downside risk at this point depending on where the token heads next.

XRP/USD 4-Hour Chart – Source: TradingView

A break below $2.1 could push XRP to retest its Sunday lows of $1.91 for a 4% drop while a move above $2.23 could result in a boost to the $2.35 area.

The Relative Strength Index (RSI) favors a bearish outlook as it has moved below its 14-period moving average. This means that the downtrend has gained strength, especially as the oscillator has crossed below the mid-line.

XRP’s moving averages favor a bearish prediction as well as the token is trading below its 200-period exponential moving average (EMAs) while the 9-period EMA seems poised to make a bearish crossover with its 21-period peer.