The XRP price has remained in a bear market this year, despite the network receiving a series of positive news.
Ripple (XRP) was trading at $2.10 on Saturday, down by 40% from its highest point this year. Its market cap has dropped from $190 billion in January to $121 billion today. It’s currently trading at $2.08. See below.
XRP has had numerous bullish news events this year. First, Teucrium recently launched the 2X Long Daily XRP ETF or XXRP that has already attracted over $24 million in assets.
Second, several companies, such as Grayscale, 21Shares, WisdomTree, Canary, and Franklin Templeton, have all applied for a spot fund. Most analysts believe that the U.S. Securities and Exchange Commission will approve these ETFs. Polymarket odds indicate an approval rate of 77%.
Third, President Donald Trump mentioned XRP as one of the tokens that will be part of the U.S. government’s strategic reserves. Such a move would likely increase demand for the coin.
Furthermore, the SEC dropped its appeal of a case it had filed in 2020, thereby ending one of the longest-running legal issues in the cryptocurrency industry. The end of this lawsuit will help the company strike deals with American banks and money transfer companies. Ripple hopes that these firms will adopt its technology, which is faster and more cost-effective than SWIFT.
The XRP price has also ignored the growing market share of Ripple USD, its stablecoin whose market cap has jumped to almost $300 million.
Most recently, Ripple acquired Hidden Road, a prime broker that handles over $10 billion in assets a day. The company hopes to move some of these transactions to the XRP Ledger network.
XRP price technical analysis
The daily chart shows that the XRP price has remained under pressure in the past few months. It is still below the 50-day Exponential Moving Average and the descending trendline that connects the highest swings since December.
XRP is forming a falling wedge pattern, a popular bullish reversal sign. This pattern features two descending and converging trendlines, often leading to a breakout when they converge.
Therefore, the coin is expected to have a strong bullish breakout, with the initial target being $3.40, its highest level this year. A move above that resistance will signal further gains, potentially reaching $5.
The bullish outlook will be invalidated if the price drops below this month’s low of $1.6110.
