XRP price has been under pressure this year despite having some major bullish catalysts. Ripple has dropped for three consecutive days, reaching a low of $2.2433, down by 35% from its highest point this year. This article provides an XRP forecast and what to expect in the near term.
XRP price has dropped despite good news
The XRP token price has been under pressure despite having some major positive news. First, the Securities and Exchange Commission (SEC) ended its appeal against Ripple Labs in a case that has been going on since 2020.
The ending of this case was a notable thing for Ripple Labs as it removed a risk that had existed for five years. This lawsuit derailed its growth by limiting the number of companies that partnered with it.
Analysts now expect that Ripple Labs will ink more deals in the United States as it seeks to be a major alternative to Swift, a society that processes trillions of dollars annually.
The challenge is that Ripple is facing a major challenge because of the rising competition from Circle Payments Network (CPN). CPN is aiming to help companies send money instantly within seconds and at low transaction costs.
The XRP price also ignored Ripple Labs’ acquisition of Hidden Road, a company that offers global credit and prime brokerage. It facilitates clearing, financing, and risk management in the crypto industry. It also runs an over-the-counter platform that allows companies to buy crypto.
The acquisition is bullish because Ripple Labs hopes to bring the $3 trillion of Hidden Road’s transactions to XRP Ledger. More XRP Ledger transactions mean that more XRP tokens will be incinerated.
XRP has had other positive news, like multiple ETF applications by companies like Bitwise, Franklin Templeton, VanEck, and 21Shares. Odds of these approvals have jumped sharply in the past few months, with those on Polymarket hitting 90%.
An XRP ETF approval will likely lead to more inflows, with JPMorgan analysts expecting they will have $8 billion in the first year. In contrast, Ethereum ETFs have had about $2.5 billion in inflows since their approval in September last year.
The other big catalyst is that Ripple Labs’ stablecoin, Ripple USD, has continued to gain market share as its market cap nears $400 million.
Further data shows that investors have been removing tokens from exchanges, a sign that they are not selling.
XRP price technical analysis
The daily chart shows that the XRP price has been in a strong downtrend in the past few months, moving from a high of $3.3983 in January to $2.2455.
XRP has formed a descending triangle pattern, whose descending trendline connects the highest swing since January. The lower side of this triangle pattern is at $1.9583. This triangle leads to more downside.
The price target in a descending triangle is derived from measuring its biggest gap and then the same distance from its lower side. In this case, subtracting $1.9583 from $3.3983 gives the answer of $1.44. Minusing this one from $1.95843 gives the target to $0.50. For this to happen, the next point to watch will be at $1.
On the other hand, the coin has also formed an inverse head and shoulders pattern, a popular bullish reversal sign.
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