- XRP price dropped to $1.35 as selling pressure resumed.
- Bears have pushed Bitcoin back under $68k and altcoins are mirroring the decline.
- Short-term, bearish sentiment could trigger a sell-off to $1 or lower.
XRP continues to face bearish pressure as the latest attempts to establish an upside momentum stall, with prices down 14% in the past week.
In early trading on Wednesday, the Ripple cryptocurrency fell to lows of $1.35, extending its pullback from recent highs following a retest of $1.53.
The waning upside momentum suggests a potential further downside for the altcoin, whose performance mirrors the renewed selling pressure currently throttling Bitcoin and Ethereum bulls.
As of writing, market metrics showed derivatives data largely bearish, with retail traders signalling their downbeat perspective through dwindling XRP futures Open Interest.
Massive liquidations, most of which have been lopsided against longs, add to the retail indecision.
XRP price technical outlook
XRP’s struggles align with a cautious crypto environment. Bitcoin’s failure to hold above $70k means widespread selling that hasn’t spared top altcoins like XRP.
Technical indicators for XRP price, such as fading RSI, highlight potential weakness. If buyers fail to reclaim $1.50 and target $2.00, XRP risks testing key support levels near $1.22 and $1.13.
Conversely, breaking $2 might flip sentiment and allow bulls to target the $2.75 resistance level. The falling wedge pattern on the 4-hour chart signals such a breakout.
XRP price: likely bullish catalysts?
US XRP ETF demand has faded in recent weeks, while technical indicators highlight bears’ control.
Despite the gloom, several catalysts could spark a reversal for XRP holders.
Regulatory developments, particularly ongoing efforts to pass the Clarity Act, could be a key driver of crypto market sentiment.
A spike in adoption amid further regulatory clarity will cascade to XRP.
Whale accumulation also continues to ramp up as large holders add to positions.
This shows conviction and has the short-term effect of stabilizing prices ahead of what analysts see as an inevitable broader market recovery.
Stablecoin growth on the XRP Ledger adds another layer of utility, drawing institutional interest and increasing network activity.
DeFiLlama data shows that while DeFi TVL has declined, stablecoin market cap has jumped from around $331 million in early February to over $418 million as of writing.
Amid usage for XRPL, Ripple USD is also gaining traction.
Ripple has entered various partnerships aimed at tokenising traditional fund structures on the XRP Ledger, one of the moves set to accelerate growth.
Meanwhile, spot exchange-traded fund inflows have cooled in recent weeks. However, cumulative net inflows have topped $1.2 billion, and could explode when sentiment flips.
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