XRP Price Experiences Downtrend, Hits Lowest Level Since February

XRP, the native cryptocurrency of Ripple, has continued its downward trajectory, hitting its lowest levels since February 3. Against Bitcoin (BTC), XRP has dropped to 0.000021, marking a steep 37% decline from its highest point this year.

Bitcoin’s Strong Performance Highlights XRP’s Weakness

While XRP struggles, Bitcoin has maintained a strong upward momentum, driven by robust fundamentals. Demand for Bitcoin has been bolstered by increasing inflows into spot ETFs, which have recorded seven consecutive weeks of growth. As of now, these ETFs have accumulated $44.91 billion in inflows, bringing total assets under management to $132 billion.

Institutional interest in Bitcoin remains strong. Companies such as MicroStrategy hold over 580,250 BTC, and GameStop recently purchased 4,710 BTC. Additionally, Trump Media is raising $2.5 billion to invest in Bitcoin, with other firms like Semler Scientific and the Blockchain Group also increasing their BTC holdings.

Key XRP Catalysts in 2023

Despite its recent price struggles, XRP has seen significant developments in 2023. One major catalyst was the resolution of the SEC vs. Ripple case, which had posed a major challenge to the network since 2020. The favorable ruling has opened the door for Ripple Labs to form more partnerships with U.S. companies, enhancing its ability to compete with payment networks like Swift.

“We’ve made more deals in the six weeks following the SEC ruling than in the prior six months,” stated Ripple CEO Brad Garlinghouse.

Ripple Labs has also made strategic moves to expand its reach. Recently, the company acquired Hidden Road, a prime brokerage handling $10 billion daily. Ripple aims to integrate this volume into the XRP Ledger to strengthen its ecosystem.

Additionally, Ripple’s USD stablecoin has been gaining traction in the payments space. Its market cap has climbed to nearly $310 million, positioning it as a potential key player in the stablecoin market.

XRP Price Technical Analysis

The technical outlook for XRP remains bearish. On the daily chart, the XRP/BTC pair has formed a rounded top pattern, a typical bearish continuation signal. The pair recently fell to 0.000021, its lowest level since February, after peaking at 0.00003410 earlier this year.

A death cross—the crossover of the 50-day and 200-day exponential moving averages—appears imminent, further signaling potential downside. Weighted moving averages have already completed the death cross, reinforcing bearish sentiment.

XRP is also approaching the 50% Fibonacci retracement level, which suggests that sellers may push the price lower. The next target could be the 61.8% retracement level at 0.00001745, approximately 18% below the current price.

Final Thoughts

XRP’s price struggles highlight the challenges it faces in competing with Bitcoin’s strong fundamentals and institutional adoption. However, Ripple Labs’ strategic moves and the resolution of regulatory hurdles provide a foundation for growth in the long term. Investors should monitor key technical indicators and market developments closely to assess XRP’s future trajectory.

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