Here’s Why XRP Price is Stalling Despite the Recent Bullish Ripple News

Key Insights

• XRP price has remained in a narrow range this year.
• Ripple Labs has made some important announcements.
• On-chain data shows that the XRP Ledger network is struggling.

XRP price remains trapped in a stagnant range despite a wave of bullish milestones from Ripple Labs. The company recently secured a provisional banking charter and achieved a staggering $50 billion valuation.

However, the token has failed to mirror this corporate success. This persistent decoupling is fueled by a broader market downturn and cooling activity on the XRP Ledger. Here is why XRP is struggling to regain its momentum.

XRP Price Has Wavered Despite Notable Ripple News

Ripple Labs has made some important announcements in the past few months. A major one happened in December. At that time, the Office of the Comptroller of the Currency (OCC) granted it a provisional banking charter.

This was a major announcement as it means that Ripple will be able to offer banking solutions to other companies. Another announcement came in November when Ken Griffin’s Citadel and Fortress invested in the company at a $40 billion valuation.

Recent data shows that its valuation has jumped to $50 billion, making it one of the biggest brands in the crypto industry. The company also received several licenses, including from top countries like the United Kingdom and Luxembourg.

This is crucial as it will help the company do business in more countries, creating more demand for the token. It recently inked a partnership with KBank to explore faster payments.

On top of all this, Ripple acquired Hidden Road and GTreasury. This helped it to become a major player in the prime brokerage and custody businesses. These are major deals as the two industries handle billions of dollars in assets, which can leverage Ripple’s existing technology.

Still, despite all these developments, the XRP price has remained inside a narrow range. It is still in a bear market after falling by over 50% from its highest point last year.

Why Ripple Price has Remained in a Bear Market

One key reason why the XRP price has remained inside a narrow range is the ongoing crypto winter. It has affected Bitcoin and most altcoins. Bitcoin price itself has crashed from $126,200 to $76,000 today. The crypto market is always highly correlated.

Second, while Ripple is doing well, the XRP Ledger itself is struggling across all metrics. For example, DeFiLlama data shows that its TVL in its DeFi ecosystem has tumbled to just $48 million. This amount is a tiny one, considering that other newer chains like Monad and Plasma have a higher amount.

Third, the Ripple USD (RLUSD) stablecoin has done well and added $1.4 billion in assets. Most of them are on Ethereum. Only $350 million of them are in the XRP Ledger network.

All this means that the XRP Ledger network is not making as much money as other similar chains. It made less than $100k in the first quarter of this year. In contrast, popular chains like Solana and Ethereum are making millions of dollars a month.

The falling XRPL revenue means that fewer tokens are being removed from the market through burns. Instead, millions of tokens are brought to the market each quarter whenever Ripple Labs removes them from escrow.

XRP Price Technical Analysis

The weekly timeframe chart shows that the Ripple price has crashed in the past few months. It has moved from a high of $3.6 in July last year to $1.3800 today.

It formed a double-top-like pattern at $3.24 and has now moved below the neckline at $1.6315. That’s its lowest level on April 7 last year when Trump announced his reciprocal tariffs.

Most crucially, the token has formed a bearish pennant pattern and is now in the triangle section. The two lines of this triangle are nearing the confluence level. This meant that the token may soon have a strong bearish breakdown.

If this happens, the XRP price will drop to the next key support level at $1x. That’s about 28% below the current level. On the other hand, a surge above the key resistance level at $1.6314 will invalidate the bearish outlook.

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