Ripple Price Forecast: XRP price could shelve bullish breakout plan as downside risks persist
- XRP price moves broadly sideways as uptrend hopes diminish amid glaring downside risks.
- Ripple is ending its eight-year quarterly report in the second quarter, favoring deep insights as institutional adoption expands.
- Ripple will keep upholding transparency and sharing relevant updates on Ripple and XRP-related developments via official channels.
- Support at $2.00 has the potential to absorb the prevailing sell-side pressure, potentially igniting a reversal targeting $3.00.
Ripple (XRP) price is in a slow pullback, trading at $2.11 at the time of writing on Tuesday. Recovery has remained elusive above immediate hurdles, such as key moving averages in the 12-hour time frame and the extended descending trendline from January. On the downside, support at $2.00 is crucial for the resumption of XRP's price uptrend and preventing declines from sweeping liquidity towards the April low at $1.62.
Meanwhile, Ripple has announced that it will discontinue the quarterly report it has published since 2017, citing unmet expectations and growing institutional adoption which calls for deeper insights and additional perspectives.
Ripple discontinues quarterly report amid evolving market dynamics
According to the company's first-quarter report, Ripple's quarterly report has long served as a tool to offer transparency on its XRP holdings while delivering timely updates on the crypto markets and the XRP ecosystem.
Despite championing transparency and open communication, Ripple believes the report has not achieved its intended purpose. The blockchain company behind the Ripple USD (RLUSD) stablecoin claims that the report has been used against it, "most notably by the former Securities and Exchange Commission (SEC) leadership."
Ripple will no longer release the report starting in the second quarter but promises to communicate transparently about the company, XRP and related projects through its official channels.
The first quarter report highlights the growing institutional demand for XRP-related products. Institutions like Franklin Templeton filed the S-1 form with the SEC seeking approval to operate a spot XRP Exchange Traded Fund (ETF). Additionally, CME Group listed XRP futures, underscoring growing institutional interest and engagement.
The SEC withdrew its appeal against Ripple in the first quarter, signaling a likely end to the longstanding lawsuit – a win for the broader cryptocurrency industry. Moreover, Ripple acquired Hidden Road, a brokerage firm, for $1.25 billion, driving more institutional use cases for RLUSD and XRPL.
"XRP exchange-traded products continued to gain traction globally, with increased listings and inflows. XRP-based investment products outperformed their Bitcoin and Ethereum counterparts, recording $37.7M in inflows and bringing their year-to-date total to $214M — just $1M shy of overtaking global Ethereum funds," Ripple states in the first quarter report.
XRP's uptrend falters as downside risks emerge
XRP price sits below the 12-hour 50, 100 and 200 Exponential Moving Averages (EMAs), highlighting a sticky, bearish environment. Attempts to break above the descending trendline, as shown on the 12-hour chart below, have left more long traders liquidated.
CoinGlass data reveals that out of the $8 million liquidations over the past 24 hours, $6.93 million comprised forcibly closed long positions. This signals that a stronger bearish momentum is in play, with over-leveraged bulls bearing the biggest brunt.
The relatively flat Open Interest (OI) at $3.62 billion suggests a lack of new buying interest to absorb the selling pressure from liquidations, potentially leading to further XRP price declines.
XRP derivatives' data | CoinGlass
The Relative Strength Index (RSI) indicator's sharp drop from a recent peak of 65.43 to the current position at 39.56 upholds the bearish outlook. Further dips toward the oversold region could create instability amid potential panic-selling from traders. Losses below $2.00 could accelerate toward the April 7 low at $1.62.
XRP/USDT daily chart
On the other hand, traders cannot rule out the possibility of an immediate reversal, especially if support at $2.00 holds and provides liquidity for the next run-up. Subsequent breaks above the 50 EMA at $2.17, the 100 EMA at $2.19, the 200 EMA at $2.21 and the descending trendline could shake off the bearish pressure and resume the anticipated rally eyeing $3.00.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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
