XRP’s price plummeted in the first quarter, wiping out some of the impressive gains made in November when it surged nearly 500%.
Ripple (XRP) has transitioned into a bear market, having fallen more than 35% from its peak in January. As of Tuesday, it was trading at $2.1564, just above the vital support level of $1.9120.
The drop in XRP’s value occurred despite the achievement of several significant milestones throughout the quarter. The most noteworthy development was the decision from the U.S. Securities and Exchange Commission to conclude its ongoing litigation.
With the resolution of Ripple’s five-year legal struggle, the company can now pursue partnerships with major U.S. businesses more freely. According to CEO Brad Garlinghouse, numerous U.S. firms had refrained from collaborating with Ripple while it faced legal challenges.
Ripple seeks to position itself as the premier alternative to SWIFT, the global messaging network that facilitates over $150 trillion in transactions annually. To accomplish this, it needs to forge alliances with thousands of banks.
Despite securing money transmitter licenses in New York and Texas, XRP’s value still dropped. Furthermore, Ripple gained authorization to provide financial services in the United Arab Emirates.
Another significant milestone was the rise of Ripple USD (RLUSD), which has reached a market capitalization close to $250 million. Ripple aspires for this stablecoin to see widespread adoption in decentralized finance and other sectors.
RLUSD has outperformed larger stablecoins in terms of daily trading volume, eclipsing USDS, PayPal USD, and Honey.
Additionally, Ripple has received multiple applications for XRP ETFs from firms like Grayscale, WisdomTree, Canary, and CoinShares. Approval of an ETF could lead to substantial inflows from Wall Street investors.
Technical Analysis of XRP Price
The daily chart suggests that XRP is vulnerable to a significant bearish breakdown. It has created a head and shoulders pattern, with the neckline positioned at $1.9117. This setup is one of the most recognized bearish indicators in technical analysis and notably coincides with the 50% Fibonacci retracement level.
XRP is also nearing the formation of a death cross, as the gap between the 50-day and 200-day moving averages continues to narrow. A decline below the neckline at $1.9117 would indicate further downside potential, with the next major support level at $1.5370, which corresponds to the 61.8% retracement — nearly 30% lower than the current price. A breach of that level could push the price down toward $1.