XRP Price Prediction: Trading Volumes Jump at $2.75 Support

XRP (XRP) has been swept into the market’s latest wave of negative momentum and has booked a 9% loss in the past 7 days.

Crypto liquidations spiked above $1 billion again yesterday as Ethereum (ETH) dropped below the $4,000 level and BTC broke the $110K resistance.

The market appears to be taking a big breather after the Federal Reserve cut interest rates by 25 basis points last week.

Fear and Greed Index – Source: CoinMarketCap

As a result, sentiment has turned sour. The Fear and Greed Index has swung to 32, meaning that investors are now fearful about where the market is heading.

Trading volumes for XRP have neared $10 billion already, accounting for almost 6% of the token’s circulating market cap after a 13% 24-hour increase.

The negative momentum accelerated after the launch of XRP’s first spot exchange-traded fund (ETF) by REX-Osprey. Since its launch last Thursday, this vehicle has brought in $67 million in assets.

This represents a 100% increase in just a couple of days and underscores the public’s growing interest in the native asset of the XRP Ledger.

Two Potential Scenarios as XRP Hits Key Support

The daily chart shows that XRP has hit a key demand zone at $2.75, from which the token has bounced multiple times in the past.

XRP/USD Daily Chart (Coinbase) – Source: TradingView

Trading volumes exceeded the 14-day moving average yesterday and appear to be on track to do the same today.

This confirms that this is a highly contested area for market participants. If the price breaks below this level, it means that the selling pressure outpaced the market’s buying interest, and that would favor a bearish outlook.

In that case, we could witness a drop to $2.2, meaning a 20% downside risk in the near term.

Meanwhile, if XRP rises strongly upon hitting this mark, we could envision a move to $3.1 first and then much higher as market conditions still favor a bullish outlook despite the latest retreat.

Ripple’s Ambitious Plans Favor a Positive Long-Term Outlook for XRP

Ripple aims to become the world’s go-to decentralized solution for cross-border payments. Its ambitious vision involves overthrowing Swift’s long-standing dominance of this market.

The launch of Ripple USD (RLUSD), the network’s first native stablecoin, is considered a positive step in this direction as users can now rely on a dollar-pegged instrument to make payments.

It has been the project’s goal to create a bank in the United States and other corners of the world as well to facilitate the transfer of fiat money on and off the XRP Ledger with almost instant finality.

If Ripple controls both ends of the transaction, on-chain settlements through RLUSD and off-chain deposits through its bank, that would allow it to offer an end-to-end solution for corporations to send payments overseas instantly and at a fraction of the cost that SWIFT charges.

Market Share of Blockchains in RWA Market – Source: RWA.xyz

In addition, it has also been making some interesting steps in the real-world assets market (RWA). Recently, Securitize picked RLUSD as its liquidity product to redeem shares in BlackRock’s BUIDL fund.

Data from RWA.xyz shows that the XRP Ledger is now the 10th largest chain in this growing market. This latest deal with Securitize could propel its share to surpass Arbitrum at the 9th spot and possibly Stellar and BNB Chain next.