Key Insights
- XRP is currently facing strong bearish headwinds, with a declining funding rate and much more.
- It is facing a double top rejection that could push its price lower to around $1.7 in the charts.
- On the flip side, XRP is performing excellently on the fundamental side.
- Its launch of the RLUSD stablecoin is expected to be a success, with Japan set to increasingly adopt the cryptocurrency.
Ripple’s XRP is currently grappling with bearish momentum, along with the rest of the crypto market.
Analysts have highlighted an ongoing decline in funding rates amid a broader market downturn, and investors are concerned about the XRP price future.
Here’s a complete look at the current developments, along with market indicators and some possible outcomes for the cryptocurrency.
Negative Funding Rates Signal Bearish Sentiment
This week, XRP’s funding rates briefly turned negative and deviated from the typical 0.01% stability.
According to data from Coinglass data, this shift in funding rates show a growing selling pressure.
This trend has also been compounded by higher open interest levels since Monday.
While high open interest suggests active market participation, it can also indicate caution among traders when navigating an uncertain market.
Despite the bearish signals, however, net outflows on major exchanges show that some traders are buying the dip.
Exchange outflows typically show an increase in buying activity, as traders transfer assets to their private wallets.
In essence, there might be some optimism brewing amid the downturn.
In other news, analyst Ali recently highlighted on X that whales had sold 60 million $XRP in the last 24 hours!
Another analyst Jack the Rippler also noted that Ripple itself was joining in on the selling activity, after dumping 300,000,000 $XRP to an unknown wallet.
This tranche of XRP was worth $682,584,540 at the time of the transfer and holds a bleak cloud over the future of the cryptocurrency.
XRP Faces Critical Support Levels
After dropping by around 4% on Friday, the XRP price has already tested its $2.33 support level.
It is forming a double-top pattern, which consists of two rejections near the upper boundary of the pennant shown below.
Judging by this, if XRP continues to decline, the next major support sits at around $2.17.
If this level fails to hold, the cryptocurrency risks another drop to $1.96.
If the bears overpower the bulls again, this could also validate a rounding top pattern that could push the price further down to $1.71.
On the other hand, if the bulls overpower the bears and push XRP towards a breakout above $2.9, it would signal a reversal.
This would invalidate the bearish outlook and cause a break above the $3 mark.
Still, it is worth mentioning that the RSI and Stochastic Oscillator are both below neutral levels, meaning that the bears might be taking the upper hand.
Ripple’s Strategic Moves and Market Potential
Amid the price fluctuations, Ripple is marching onward with strategic initiatives.
For example, Monica Long, Ripple’s President recently revealed plans for the RLUSD stablecoin to expand onto prominent exchanges by 2025.
So far, Bitstamp is already on board, with Ripple already eyeing the launch of an XRP ETF, after the success of the Bitcoin and Ethereum variants.
XRP’s adoption is also looking good in Japan, with SBI Holdings CEO Yoshitaka Kitao recently announcing plans for widespread integration of Ripple’s ledger across Japanese banks by 2025.
This initiative will use the Interledger Protocol (ILP) to enhance cross-border payment efficiency.
XRP News Remains Optimistic
Despite the short-term headwinds, analysts are still strongly bullish in the long term.
The cryptocurrency gained over 360% in late 2024 and reached $2.50 on the backs of Gensler’s resignation and Donald Trump’s election.
Some of the biggest predictions indicate that XRP could reach $5 by 2025.
This trend will be supported by growing institutional adoption and the expanding use cases of XRP in cross-border payments.