XRP (XRP) just rejected a move above $1.32 once again, as the liquidity unlocked by the latest dip to $1.20 seems to have been insufficient to push the token above this key resistance.
The token’s 7-day performance swung to negative territory yesterday, as XRP dipped from $1.32 to $1.19 at the time of writing.
As we reported a week ago, Ripple secured a license from the Office of the Comptroller of the Currency (OCC) to launch a national bank in the United States.
Ripple has been progressing toward its vision of making the XRP Ledger the preferred blockchain for deploying institutional payment solutions and other DeFi applications.
However, market sentiment remains heavily depressed, as evidenced by today’s significant drop.
Ripple USD (RLUSD) Propels DeFi Ecosystem Within the XRP Ledger
The launch of Ripple USD (RLUSD), the network’s native stablecoin, marked a pivotal moment for the blockchain, as the project now has a fully compliant crypto asset that can be used for on-chain settlement of fiat transactions.
In just a couple of years, RLUSD has jumped to the 9th spot in the list of most valuable stablecoins by market cap, surpassing well-established rivals like BlackRock BUIDL and already closing in on PayPal USD (PYUSD).
As a result, real-world assets (RWAs) within the XRP Ledger have climbed to $644 million. Meanwhile, the market cap of stablecoins hosted on this blockchain is nearing $1 billion already.
According to data from RWA.xyz, stablecoin transfer volumes have surged by 74% to $9 billion in the past 30 days, indicating higher network usage for this particular use case — one of the most relevant for the XRP Ledger.
The launch of a lending protocol, a module that has already been proposed for the blockchain and that is currently being voted on by validators, could further strengthen the network’s use cases, at a point when adoption among institutional customers seems to be accelerating.
We see a bright future for the XRP Ledger based on Ripple’s latest moves in the United States. The market has opted to ignore these project-specific developments, as we seem to be still in the earliest stages of this bull market.
However, once sentiment improves, this latest news will likely be priced into the token and could result in a significant expansion of XRP’s valuation.
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See all Ripple forecastsXRP Could Dip to $1.14 as It Keeps Drawing Liquidity from Price Imbalances
Turning to the chart, XRP failed to clear the $1.32 resistance yesterday. It was possible that the strong rebound that the token experienced at $1.20 could have broken this sell wall. However, today’s reaction to that price level confirms that sellers remain in control of the price action.
Lower oil prices and an expected de-escalation in the U.S. war with Iran have been insufficient to keep cryptos afloat.
The Republicans lost their majority in Congress — a strong blow to the Trump administration. This could prompt the White House to ease its stance on Iran, and that could reduce the market’s aversion to risk.
In addition, lower oil prices would probably keep inflation in check, and that could prompt the U.S. Federal Reserve, which could increase their willingness to delay the next rate hike.
We still believe that XRP is in the early stage of a bull market, but this latest dip could anticipate a much stronger decline to the lowest area of the first fair value gap (FVG) shown in the chart at around $1.14.
The price action will be the one to either confirm or discard these key levels. If the downtrend gains traction and pushes past this nearby support, then the next stop could be $1.04.