Here’s why the XRP price fell despite key Ripple news
The XRP price has remained on edge this week despite significant developments, including a $500 million investment, Ripple USD growth, and a partnership with Mastercard and Gemini.
- XRP price retreated this week despite having some notable developments.
- Ripple Labs received a $500 million investment from Citadel and Fortress.
- The Ripple USD stablecoin crossed the $1 billion asset milestone.
Ripple (XRP) token $2.2590, down by ~40% from its highest level this year and 10% below its weekly high.
XRP price drops despite key news
Ripple is enjoying a highly successful week. The company secured a $500 million investment from Citadel and Fortress, valuing it at $40 billion. This funding makes it one of the largest companies in the crypto industry and twice as big as Circle.
Ripple USD (RLUSD), its stablecoin, continued to grow and crossed the $1 billion metric for the first time ever. Notably, the milestone happened close to one year after its launch. It is now the third-largest GENIUS Act-compliant stablecoin, after USDC and PayPal USD.
Ripple Labs also inked a deal with Mastercard, WebBank, and Gemini to introduce RLUSD settlement on the XRP Ledger for credit card payments. This was a major deal because Mastercard is the second-biggest payment processing company in finance.
The other major XRP news was that Bitwise made a crucial filing with the SEC. This is a sign that it plans to launch its XRP ETF soon. The fund will join the REX-Osprey XRP Fund, which has accumulated over $112 million in assets.
Therefore, the XRP price dropped amid broader weakness in the crypto market as Bitcoin and Ethereum also fell. While some tokens like Zcash, ICP, and Dash rose, most of them were down this week.
The coin also wavered as the weighted funding rate has remained in the negative zone. A negative funding rate is a sign that investors anticipate the future price will be lower in the future than where it is today.
XRP’s open interest has also dropped to $3.5 billion, down from over $10 billion in August. This is a sign that investors are staying on the sidelines.
XRP price technical analysis
The daily timeframe chart shows that the XRP price has been in a downward trend in the past few months. It has formed a descending channel and is now slightly above the lower side.
The token has remained below the 100-day Exponential Moving Average. This is a sign that bears are in control for now.
On the positive side, it has formed a double-bottom pattern at $2.1656 and a neckline at $2.60. Therefore, there is a likelihood that it will rebound and possibly hit the upper channel boundary at $2.65.
