Ripple price forecast: XRP may tumble below $2 as bearish momentum intensifies.

Key Takeaways

• XRP has decreased by 7% in the past 24 hours, now trading at $2.20 per token.
• This downturn occurs amidst a broader correction in the cryptocurrency market.

XRP Declines Despite Ripple’s Efforts to Accumulate More Tokens

XRP, the native coin of the Ripple ecosystem, has seen a significant drop of 7.5% in the last 24 hours, now trading at $2.20. This decline comes even as Ripple Labs has initiated a plan to raise at least $1 billion through a special purpose vehicle aimed at accumulating XRP.

According to a report by Bloomberg, this funding round will occur through a special purpose acquisition company (SPAC), with the funds being allocated into a new digital asset treasury structure. The report also indicated that Ripple intends to contribute some of its own XRP holdings to this effort.

Furthermore, Ripple announced on Thursday its acquisition of GTreasury, a provider of corporate treasury software, in a deal valued at $1 billion. This acquisition aligns with Ripple’s strategy to expand its footprint in financial services, following earlier purchases of stablecoin payment firm Rail and brokerage firm Hidden Road this year.

Ripple disclosed that GTreasury’s treasury management platform, utilized by Fortune 500 companies for cash, currency, and risk management, will now be integrated into its suite of financial tools.

XRP May Dip Below $2 as Bullish Momentum Weakens

The XRP/USD 4-hour chart shows a bearish trend following the token facing resistance near the lower trend line of a descending wedge pattern earlier this week. With a 7.5% decrease in valuation over the last day, XRP is currently trading below the daily support level of $2.35.

The RSI of 37 indicates that bearish dominating forces are in control, with MACD lines also signaling selling pressure. At the time of writing, XRP is trading at $2.216. If the correction continues, XRP could potentially extend its decline toward the next daily support level of $1.96. The previous low of $1.77 from last Friday may also be re-tested if the downward trend persists.

However, if XRP manages to recover, it could extend its rebound toward the 200-day EMA at $2.62 in the coming hours. The mid-term resistance level of $3 remains an objective in the meantime.