Ripple's XRP has faced bearish pressure in recent days, having fallen below significant support levels and tested its lowest recorded levels in early May. After failing to maintain positions above $2.30, the sixth-largest cryptocurrency by market capitalization is now trading at around $2.17.
The digital currency attempted to recover in April after regaining resistance at the downward trendline. However, recent price action suggests that XRP is forming a price range rather than entering a bullish recovery.
The cryptocurrency faced rejection at $2.60 in mid-May, coinciding with its highest levels in March. Since then, selling pressure has intensified, pushing the price below the average range level of $2.27.
At current prices, XRP shows signs of stabilization above the critical support area between $2.05 and $2.12. This area represents its lowest recorded levels in early May and may be a crucial level for the next directional movement of the currency.
■ Market conditions indicate a decrease in activity.
Trading volumes for Ripple (XRP) have declined significantly. Spot market activity decreased by 37% to $1.51 billion over the past 24 hours compared to the previous day.
This trend is reflected in the derivatives market. According to Coinglass data, the trading volume of Ripple futures contracts has fallen by nearly 38% to $2.97 billion, while open interest has decreased by 3.39% to $3.90 billion.
Technical indicators suggest a short-term bearish trend. The Chaikin Money Flow (CMF) is at -0.07, indicating significant capital outflows from the market.
The Directional Movement Index (DMI) confirms a developing bearish trend. At the same time, the On-Balance Volume (OBV) continues to decline, indicating that selling volume outweighs buying volume.
The Relative Strength Index (RSI) is approaching the oversold territory at 40.82, but has not yet shown any reversal. Moving averages across most timeframes indicate sell signals, except for the 200-day moving average, which remains supportive.
Heat maps reveal a sweep of major liquidity areas in recent days, with one remaining cluster of liquidity around the $2.05 area. This suggests the possibility of revisiting this area if selling pressure continues.
■ Institutional interest is growing despite the price decline.
While the short-term price action remains bearish, institutional developments paint a more optimistic picture for XRP's long-term outlook.
Open interest in XRP has risen to nearly $5 billion, as the U.S. Securities and Exchange Commission (SEC) has officially begun reviewing the WisdomTree XRP Trust. Although this review does not guarantee approval, it indicates that the SEC is taking financial products related to XRP seriously.
Coinbase Institutional has announced it will launch 24/7 trading of XRP futures contracts for U.S. investors starting June 13. This follows the company's introduction in April of XRP futures contracts regulated by the Commodity Futures Trading Commission (CFTC) through Coinbase Derivatives.
Another significant development comes from Alt Capital, a subsidiary of the publicly traded Hyperscale Data. The company announced plans to launch an institutional lending platform for Ripple in the third quarter, targeting companies listed on the New York and Nasdaq exchanges.
The platform will provide asset-backed loans protected from futures contract risks, with all contracts tracked on-chain through Ripple's ledger. Alt Capital plans to purchase up to $10 million worth of Ripple to support this initiative.
For traders and investors following Ripple, the immediate support level is at $2.12. A drop below this level could test the important psychological level of $2.00.
On the positive side, the first resistance level is at the 20-day simple moving average around $2.34, followed by the upper Bollinger band at $2.56. Bulls will need to reclaim these levels to regain control of the trend.
The cryptocurrency is currently trading below the 100-hour simple moving average, with a downward trendline forming around $2.22.
Market participants should monitor price reactions at the support area between $2.05 and $2.12, as this area may determine whether XRP will continue its downward trajectory or experience a rebound in the coming days.
