XRP is battling volatility and a decline in new addresses, and is now relying on Bitcoin's bullish momentum to break its downward trend.
XRP's strong correlation with Bitcoin (0.86) could lead to a considerable recovery if BTC surpasses $110,000.
XRP is currently holding above the support of $2.13; a failure to break the resistance of $2.23 could lead to a drop to $2.08.
Recently, XRP's price has experienced extreme volatility, which has prevented the altcoin from finding any stability. Thus, after undergoing significant price fluctuations, XRP struggles to regain its momentum.
Context for ChatGPT: Ripple's XRP crypto, one of the most discussed cryptos currently, has faced considerable volatility despite the hype. Speculation is now rife regarding its future direction.
This lack of consistency is evident in investor behavior, with market uncertainty influencing holders. The altcoin has failed to establish a clear trend, leaving many traders waiting.
XRP relies on Bitcoin's price.
The rate of new address additions for XRP has seen a significant decline since March 2025, indicating that the coin is losing its appeal to new investors. With just over 4,000 new addresses added daily, XRP's growth is slowing. This trend reflects a broader market uncertainty, where investors hesitate to engage with an asset that lacks clear direction.
The recovery has not been as strong as expected, and the overall sentiment around XRP seems to have cooled. The pronounced lack of interest from new investors may be attributed to the prolonged downward trend observed over the past month.
Currently, the token's price shares a strong correlation of 0.86 with Bitcoin's, which could work in favor of the altcoin. If Bitcoin continues its upward movement toward the price threshold of $110,000, XRP could benefit from this positive momentum.
If Bitcoin maintains its upward trend, XRP could experience similar growth, as the altcoin generally reflects BTC's price movements. This strong correlation could thus provide some relief to XRP holders.
XRP's price is tentatively aiming for a recovery.
At the time of writing this article, XRP is trading at $2.16, holding above the support level of $2.13. This support has helped prevent further declines, and the possible scenario would be a consolidation above this level. The next resistance point is at $2.23, which could limit short-term gains if not broken.
If Bitcoin continues its bullish momentum, Ripple's coin could in turn break the resistance of $2.23, paving the way for new gains. This could allow the altcoin to confront the barrier of $2.27, which has acted as a significant resistance point. A sustained rise could thus propel the price toward higher levels depending on market conditions.
However, if market conditions do not trigger significant gains, Ripple's crypto could fall below the support level of $2.13. In this case, the altcoin could slide to $2.08, reflecting the decline observed earlier this month. A drop below this level would signal further weakness for XRP and could prompt new selling among investors.
Moral of the story: an altcoin is nothing without its Bitcoin.
