Ripple Price Prediction: XRP in technical limbo as Ripple eyes stablecoin-driven growth
- XRP continues to trade sideways, with support at $2.09 and resistance at $2.24.
- Ripple’s CTO, David Schwartz, emphasizes that stablecoins do not limit XRP but rely on its infrastructure for liquidity.
- A sell signal from the SuperTrend Indicator and unsteady money inflow into XRP could thwart the potential technical breakout.
Ripple (XRP) struggles to stage a recovery and sustains consolidation around $2.17 at the time of writing on Friday. Sentiment generally improved in the broader cryptocurrency market despite apparent geopolitical tensions in the Middle East. Bitcoin (BTC) ticked higher, stepping above $106,000, while Ethereum steadied gains above $2,550, reflecting relief for major digital assets. However, further price increases remain largely constrained, with XRP likely to extend consolidation into the weekend.
Stablecoins need XRP infrastructure for liquidity - Ripple CTO David Schwartz
Ripple’s Chief Technology Officer (CTO) David Schwartz said during a panel discussion shared by Xaif on X that stablecoins will not limit XRP. Instead, Schwartz emphasized that stablecoins such as Ripple’s RLUSD, Tether’s USDT and Circle’s USDC would rely heavily on the XRP infrastructure for liquidity.
According to Schwartz, XRP plays a fundamental role in stablecoin adoption, particularly as a liquidity bridge.
“If you imagine dozens of stablecoins and hundreds and hundreds of markets, there are probably not going to be as efficient as going through some sort of assets that aggregate like the US Dollar (USD) does today for smaller currencies. We see XRP playing that role,” Schwartz explained.
The move toward a stablecoin and tokenized assets-backed economy is gaining momentum rapidly in the US, particularly with the passage of the Guidance and Establishing Innovation for US Stablecoins (GENIUS) bill in the Senate earlier this week.
The advancement of the GENIUS bill to the House has been lauded as a monumental step toward progressive cryptocurrency regulations in the US.
Supporters of the bill argue that, in addition to overseeing the operations of stablecoin issuers, the GENIUS Act will ensure the seamless enforcement of anti-money laundering (AML) guidelines, transaction monitoring and customer due diligence in the same manner as traditional financial institutions.
Technical outlook: XRP extends consolidation
XRP’s technical outlook remains in limbo between support at $2.09, highlighted by the 200-day Exponential Moving Average (EMA), and a confluence resistance at around $2.24, established by the 100-day EMA and the 50-day EMA.
A break above the confluence hurdle at $2.24 could significantly boost XRP’s likelihood of lifting above the descending trendline, as shown on the daily chart below. Traders have their eyes set on key milestones, ranging from May’s peak of $2.65 to the supply area around $3.00, which was tested as resistance in early March.
XRP/USDT daily chart
On the contrary, the path of least resistance could flip downward if XRP slips under the 200-day EMA support at $2.09. Sellers already hold a significant claim on the trend, with the Relative Strength Index (RSI) dropping below the 50 midline.
This bearish outlook is underscored by the position of the Money Flow Index (MFI), which, although remaining above the midline, indicates a slight downward trend.
The MFI tracks the amount of money entering XRP, with a persistent decline likely to signal a shift from bulls to bears. In that case, price action below the 200-day EMA could accelerate losses past $2.00, bringing key levels tested in April at $1.80 and $1.61 into sight.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
