XRP price struggles below $2.26 resistance despite Ripple stablecoin rapid growth
XRP has been facing a downtrend in recent weeks
XRP's price movement has hit a rough patch, with the cryptocurrency continuing its downtrend below the key resistance level of $2.26. Over the past two weeks, XRP has been making lower lows and lower highs, with a recent lower high observed at $2.20 during the late European session yesterday. As of today, XRP has declined by 3.7% since the Asian session, now trading near $2.069 in the European session. This sharp drop has completely offset the gains seen yesterday and aligns with the downtrend XRP has been facing in recent weeks.
Despite XRP's price struggles, Ripple's new stablecoin, RLUSD, is gaining attention for its impressive performance in the broader crypto market. According to XRPL dUNL validator Vet, RLUSD is currently the most capital-efficient stablecoin, boasting the highest volume-to-TVL ratio at 37%. This far surpasses other leading stablecoins like Tether, USDC, and PayPal USD. Since its launch in December 2024, RLUSD’s market capitalization has surged to $243.77 million, exceeding Ripple's internal projections for growth.
XRP faces resistance at $2.20 with 50 EMA capping upside potential
XRP price dynamics (March - April 2025). Source: TradingView
The 4-hour chart reveals the increasing pressure on XRP price, given the 50 EMA now acting as a clear resistance at $2.20. This resistance is holding firm to prevent any upward movement beyond that level. The continued decline is now pushing XRP toward the crucial support level at $2.06. A break below this support would signal further downside, potentially leading to more substantial losses in the coming days.
On the other hand, a rebound from current levels, especially if accompanied by a break above $2.20, could reignite a short-term rally. The current market sentiment, coupled with Ripple's advances in stablecoins like RLUSD, indicates that Ripple's ecosystem may see growth, but XRP's immediate price movements could remain subdued until a clear trend reversal emerges.
The negative funding rate on XRP perpetual futures highlight growing bearish sentiment. XRP's price declined for six consecutive days, reaching a three-week low of $2.026.
