XRP Price Prediction: Can XRP Reverse Its Downtrend? Key Levels to Watch

XRP (XRP) has gone down by 12.2% in the past month and currently stands at $2.12 per token as the crypto market has faced significant selling pressure amid the tense situation in the Middle East.

The approval of XRP futures by the CME Group and chatter about how this could expedite the approval of an XRP-linked spot exchange-traded fund (ETF) have failed to lift the price of this token after its November – January rally pushed the token near its all-time highs.

Ripple Partners with Alchemy Pay

Just a few days ago, Ripple announced that it partnered with Alchemy Pay to start offering fiat payments via Ripple USD (RLUSD) – the network’s recently launched native stablecoin.

This continues to pave the way for Ripple to establish itself as a leading decentralized platform for cross-border payments.

In addition, USDC is now supported on the Ripple network. This opens up the door for billions in liquidity that could flow to this blockchain as users would benefit from the blockchain’s low fees and robust security.

RLUSD Market Cap – Source: TradingView

Ripple USD has been quite successful in a relatively short period. Data from DeFi Llama shows how its market cap has been rising from around $50 million in December to $415 million at the time of writing.

Although it is still a relatively small player in this segment of the crypto market – currently ranked at 18th in terms of market cap – it could keep climbing the ladder as it continues to secure more and more partnerships and further exchange listings.

Odds of a Bearish Breakout Are High

Looking at the 4-hour chart for XRP, we can see that the token is heading to tag a key area of support at around $2.10. This has been a relevant area from which the token has bounced three times already.

XRP/USD 4-Hour Chart (Binance) – Source: TradingView

Will this be the decisive move that ends up breaking it? The fact that the price has to return so many times to this level means that buying interest is quite weak. Hence, the price is looking for areas of high liquidity like this to find some strength for the next leg up.

This support is also relevant because it would mean a retest of a former trend line support for XRP from which the price has bounced off once.

If buyers show up, the price could eye the 200-period exponential moving average (EMA) and head to the $2.33 resistance next.

The Relative Strength Index (RSI) is free-falling and seems headed to touch oversold levels. This means that the downtrend is quite strong and this favors a scenario where the token breaks below that $2.10 barrier.

In that case, the next support to watch would be the psychological $2 threshold. At this point, a strong bounce would be highly likely, possibly to retest the $2.10 level from below.

XRP/USD Hourly Chart (Binance) – Source: TradingView

We can already see in a lower time frame a strong reaction from the price after it touched this key support area. Trading volumes once XRP hit $2.09 are above the average already.

The $2.18 seems to be the key resistance in this lower time frame and a break above that level would confirm a bullish outlook for the next few hours. However, the dominant trend is bearish and betting against that doesn’t seem wise.