XRP, the cryptocurrency linked to Ripple Labs, continues to face intense selling pressure, reaching its lowest price against Bitcoin since February 3. The XRP/BTC trading pair has dropped to 0.000021, marking a steep 37% plunge from its 2024 peak of 0.00003410, even as Bitcoin climbs to new highs.
While Bitcoin maintains a strong bullish trajectory fueled by consistent institutional demand and ETF inflows totaling $44.91 billion XRP’s price action has lagged significantly. This divergence underscores a widening performance gap in the crypto market as investors gravitate toward assets with immediate adoption and capital inflows.
Bitcoin’s Momentum Overshadows XRP
The surge in Bitcoin price is driven by robust fundamentals. Institutional adoption is growing, with companies like Strategy now holding over 580,250 BTC. New entrants include GameStop, which recently bought 4,710 BTC, and Trump Media, currently raising $2.5 billion to build a Bitcoin treasury. Other notable accumulators include Semler Scientific and The Blockchain Group.
In contrast, XRP has yet to see the same level of institutional inflow or retail enthusiasm. However, Ripple Labs has made several strategic moves in recent months that could impact long-term sentiment.
Ripple’s Catalysts: Legal Win and Expansion Efforts
One of the most important catalysts for XRP this year was the resolution of the SEC vs Ripple lawsuit, which had been a cloud over the project since 2020. With legal clarity now established, CEO Brad Garlinghouse reported that Ripple signed more deals in six weeks post-ruling than in the previous six months. This signals renewed confidence and potential for U.S.-based partnerships.
Ripple Labs also made a major acquisition, purchasing Hidden Road, a prime brokerage that handles over $10 billion in daily volume. The company aims to integrate this flow into the XRP Ledger, positioning itself as a significant player in cross-border finance.
Meanwhile, Ripple USD, the company’s stablecoin, is quietly gaining traction. Its market cap has grown to nearly $310 million, with ambitions to compete in the global payments market.
Technical Outlook: More Pain Ahead?
From a technical standpoint, the outlook for XRP remains bearish. The XRP/BTC pair is forming a rounded top pattern, typically a signal of continued downside. The death cross where the 50-day moving average crosses below the 200-day appears imminent, reinforcing the bearish sentiment.
XRP is currently hovering near the 50% Fibonacci retracement level, with the next major support at 0.00001745, the 61.8% retracement. A break below this could trigger an additional 18% decline from current levels, setting the stage for even more bearish price action.
Despite positive developments surrounding Ripple’s legal standing and ecosystem growth, XRP’s price continues to underperform, weighed down by broader market dynamics and technical signals. As Bitcoin continues to attract institutional capital and reach new highs, XRP may need further catalysts or stronger adoption to reverse its downtrend.
