XRP has closely mirrored Bitcoin's movement amidst a potential parabolic rally in cryptocurrencies. Following last week's bearish tone, XRP started this week on a similar trend. The ongoing adoption of RLUSD appears to have spurred overall activity on the XRPL network.
While XRP struggles to reclaim the $2.3 territory, a report on the XRP network brings hope for the future.
Indeed, Ripple’s XRP network first-quarter 2025 report revealed a decrease of 30 to 40% in both new wallet creations and total transaction volume on the XRPL ledger. However, the increasing adoption of the RLUSD stablecoin has contributed to boosting the overall activity on the network.
“The RLUSD has emerged as one of the activity drivers on the chain, with a market capitalization exceeding $90 million and a total volume on DEXs surpassing $300 million,” noted the report.
The acquisition of Hidden Road in the first quarter also helped drive adoption of XRP and RLUSD. Furthermore, the resolution of the SEC’s dispute with Ripple has attracted more institutional investors, as evidenced by the high number of fund managers seeking to offer spot ETFs on XRP.
As a leading altcoin in the market, the price of XRP has closely followed the Bitcoin movement in recent weeks. While XRP has attempted to regain a long-term bullish sentiment, the short-term bearish perspective poses risks of further sales.
On the 4-hour chart, the XRP price has continued to consolidate within a horizontal channel between $1.9 and $2.9.
However, the token’s price has indicated a short-term bearish sentiment, especially after the 4-hour MACD line crossed below the zero line. Moreover, the Relative Strength Index (RSI) on the 4-hour chart has formed a bearish divergence, suggesting a potential decline towards the support located above $2.05.
XRP recently broke the bullish trendline as announced in our previous articles. Now, eyes are on the supports at $2.05 and $1.92.
Maintaining above the 200-day simple moving average at $2.05 would, however, provide a bullish momentum towards the Point of Control at $2.39.
Currently, XRP is clearly bearish and facing the aftermath of its wild surge in January when the rest of the market plummeted to lows.
Given the recent market dynamics, it is essential for investors and observers to remain vigilant of the token’s technical and fundamental signals. The current consolidation of XRP’s price and its potential medium-term evolution will largely depend on various internal and external factors.
For a more in-depth analysis and a through understanding of Ripple market movements, it is recommended to regularly check reports and analyses from our experts.
In summary, in the short term, the token could regain momentum up to the range between $2.3 and $2.4. However, in the medium term, signals indicate that XRP has not yet finished its distribution phase and could trend towards $1.3 in the coming weeks. At this stage, the risk/reward ratio still appears too risky.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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