XRP faces price pressure, but progress in ETFs and stablecoins generates optimism in the ecosystem

The price of XRP remains under pressure amid the widespread weakness in the cryptocurrency market, although recent institutional developments suggest long-term growth opportunities. The token has fallen 37% from its July high, with its current trading price at $2.07 and a market capitalization of $125.89 billion.

Market Pressure and Deleveraging Dynamics

The current correction in XRP is part of a broader retracement affecting the entire crypto sector. Bitcoin has fallen below $104,000, its lowest level in weeks, while the total market capitalization has contracted to $3.4 trillion. This movement has triggered a cascade effect that drives forced liquidations among traders.

Open interest data in XRP futures reflect this dynamic: it has dropped to $3.5 billion, the lowest point since October 19. This metric contrasts sharply with the $9 billion recorded before the October 11 liquidation event, which resulted in losses exceeding $20 billion in a single day.

Technical Analysis: Bottom Signals and Critical Support

On the daily chart, XRP shows significant bearish patterns. The price has declined from $3.65 in July to current levels, forming a descending channel approaching its lower barrier. The token has crossed both the 50-day and 200-day exponential moving averages, nearing the formation of a death cross pattern.

Additional technical indicators reinforce this trend: the Supertrend indicator is positioned above the price, and the True Strength Index lines point downward. The key support at $2 represents a critical level; if broken, the double bottom pattern in formation would be invalidated. This setup suggests greater downside potential in the short term.

Positive Catalysts Supporting Confidence

Beyond technical and market challenges, XRP has multiple growth drivers that could trigger a recovery once the market stabilizes.

Expansion of financial products: The REX-Osprey XRP ETF, recently launched, has accumulated approximately $120 million in assets under management, a notable performance for such a new product with a 0.75% expense ratio. This success indicates strong institutional appetite. Bitwise, for its part, has updated its regulatory proposals to include specific listing terms and ratios, signaling that more XRP ETFs could arrive soon.

Stablecoin milestone: Ripple USD is on track to reach $1 billion just one year after its launch, positioning it among the fastest-growing stablecoins in the sector. This expansion will directly benefit XRP’s price as adoption on the XRP Ledger network increases.

Consolidation strategy: Ripple Labs has executed several strategic acquisitions to strengthen its infrastructure. The purchase of Palisade provides institutional custody solutions with improved efficiency ratios. Additionally, acquisitions of GTreasury, Rail, and Hidden Road—now consolidated under Ripple Prime—expand the ecosystem’s operational capabilities.

Swell Event: The Ripple Swell conference in New York (Tuesday and Wednesday) brings together key players like Nasdaq, BlackRock, and Franklin Templeton, creating opportunities for institutional partnerships that could accelerate XRP adoption.

The contrast between the current technical pressure and the developing fundamentals defines XRP’s scenario: a token with short-term challenges but solid foundations for future growth.