Ripple (XRP) price declined 5.2% over the past 24 hours to $2.31, underperforming other major cryptocurrencies despite Bitcoin (BTC) reaching a new all-time high of $111,807. This article explores the factors behind XRP's downturn and what investors can expect next.
Key Factors Behind XRP's Underperformance
1. Macroeconomic Turbulence
- Bitcoin ETF Inflows: While BTC benefited from $934M in daily ETF inflows (the second-highest daily total), XRP failed to capitalize on the bullish momentum.
- Trump's Tariff Threats: New institutional demand for BTC emerged following trade policy announcements, but XRP saw no similar boost.
2. Stablecoin Competition Fears
JPMorgan, Bank of America, Citigroup, and Wells Fargo are reportedly exploring a joint USD-backed stablecoin initiative. This Wall Street-backed project could threaten Ripple's RLUSD adoption among institutional players.
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RLUSD Market Position at Risk?
Ripple's regulated stablecoin (launched March 2025) currently holds:
- $310M market cap
- 1:1 USD reserves backing
- Integration with XRP Ledger and Ethereum
However, competition from bank-backed stablecoins may slow RLUSD's growth trajectory, particularly in institutional adoption.
XRP Derivatives Market Signals Caution
| Metric | Change | Current Value |
|---|---|---|
| Open Interest | ↓1.47% | $4.89B |
| Trading Volume | ↑51.84% | $6.97B |
| Liquidations (Longs) | $14.88M | Dominant |
Key observations:
- Declining OI suggests traders are reducing positions
- Surge in volume indicates intense selling pressure
- Over 93% of liquidations were long positions
Technical Analysis: Bearish Short-Term Outlook
Current Price: $2.3066 (-5%)
Key Levels:
- Support: $2.20 → $2.10 → $2.08
- Resistance: $2.37 (21-day MA) → $2.45
Indicators:
- RSI: 48.46 (bearish momentum)
- Price below both 9-day and 21-day MAs
- Weak follow-through above $2.40
FAQ: Addressing Investor Concerns
Q: Why did XRP drop while Bitcoin rallied?
A: XRP faced unique pressure from stablecoin competition fears and derivative market deleveraging, while BTC benefited from institutional inflows.
Q: Can XRP recover soon?
A: Recovery depends on holding $2.20 support and OI reclaiming $5B. Bitcoin's stability above $108K could help.
Q: How does JP Morgan's stablecoin affect Ripple?
A: It threatens RLUSD's institutional adoption potential by offering a bank-backed alternative.
Q: What's RLUSD's current position?
A: At $310M market cap, it's growing but faces new competition from traditional finance players.
Market Outlook
While Bitcoin's strength provides some macro support, XRP faces specific challenges:
- Stablecoin competition concerns
- Derivative market caution
- Technical breakdown below key MAs
Investors should watch the $2.20 support level and OI trends for near-term direction clues.
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Disclaimer: This content represents market analysis, not financial advice. Please conduct your own research before making investment decisions.