XRP could dip below $2.0 as bearish momentum thickens

Key takeaways

• XRP is down 7% in the last 24 hours and is now trading at $2.2 per coin.
• The bearish performance comes as the broader crypto market undergoes a correction.

XRP continues to decline despite Ripple’s efforts to accumulate more tokens

XRP, the native coin of the Ripple ecosystem, has lost 7.5% of its value in the last 24 hours and is now trading at $2.2 per coin. The bearish performance comes despite Ripple Labs leading an effort to raise at least $1 billion through a special-purpose vehicle aimed at accumulating XRP.

Bloomberg reported that the funding round will occur via a special purpose acquisition company (SPAC), with funds held inside a new digital-asset treasury (DAT) structure. The report added that Ripple intends to contribute a portion of its own XRP holdings.

Furthermore, Ripple announced on Thursday that it had acquired GTreasury, a corporate treasury software provider, in a deal worth $1 billion. Ripple is expanding into financial services via acquisitions, buying stablecoin payments firm Rail and prime brokerage firm Hidden Road earlier this year.

Ripple revealed that GTreasury’s treasury platform, used by Fortune 500 enterprises for managing cash, foreign exchange, and risk, will now become part of its suite of financial tools. 

XRP could dip below $2 as bullish momentum grows weaker

The XRP/USD 4H Chart is bearish and inefficient after the coin price found resistance around the lower trendline of a falling wedge pattern earlier this week. It has lost 7.5% of its value in the last 24 hours and is now trading below the daily support of $2.35. 

The RSI of 37 shows that bears are currently in control, with the MACD lines also signalling selling pressure. At press time, XRP is trading at $2.216 per coin. If the correction continues, XRP could extend its dip toward the next daily support at $1.96. Last Friday’s low of $1.77 could also be revisited if the bearish trend continues. 

However, if XRP recovers, it could extend the recovery toward the 200-day EMA at $2.62 over the next few hours. The $3 resistance level remains a medium-term target for now.