XRP Price Prediction: Why is XRP Falling Amid the Key Tailwinds

XRP price crashed in the second half of the year, wiping out billions of dollars in value despite some notable positive news and tailwinds. The Ripple token dropped to a crucial support level at $2. That’s much lower than its year-to-date high of $3.65.

XRP Price Has Crashed Despite Key Tailwinds

The XRP price has lagged behind the broader market this year. It had some of the best tailwinds that, in theory, should have catapulted it higher.

One of the most important XRP news stories was that the Securities and Exchange Commission (SEC), under Paul Atkins, decided to end the Ripple vs SEC case, which had been going on for years.

Ending that case removed one of the main headwinds that was preventing Ripple Labs from making major deals in the United States.

Another tailwind was the Ripple USD (RLUSD) stablecoin. It was launched in December of last year and continued to grow. Its market capitalization reached over $1.3 billion. This growth made it one of the largest stablecoins compliant with the GENIUS Act in the United States.

Meanwhile, Ripple Labs made four large acquisitions, which were meant to boost its ecosystem and utility. These buyouts include companies such as Hidden Road, now known as Ripple Prime, GTreasury, Rail, and Palisade.

XRP price crashed even after Ken Griffin’s Citadel and Fortress Asset Management invested $500 million in Ripple Labs at a $40 billion valuation. The company plans to use these funds to grow its ecosystem.

Most recently, the Office of the Comptroller of the Currency (OCC) granted the company conditional approval for a U.S. banking charter. This approval made it one of the few companies in the crypto industry to have a banking charter.

This development also meant that Ripple can start offering banking solutions, such as custody for stablecoin companies.

Ripple price also dropped after the Securities and Exchange Commission (SEC) approved multiple XRP ETFs, which have been received well by investors. They have already accumulated over $1 billion in assets in less than a month.

This is a notable achievement, considering that all Ethereum ETFs have accumulated $19 billion in assets in nearly 18 months.

Why XRP Has Crashed Amid These Bullish Ripple News

The XRP price has crashed despite these tailwinds because of the ongoing crypto market crash that has affected Bitcoin and most altcoins, including those with the most utility.

Bitcoin has dropped from the year-to-date high of $126,300 in October to the current $90,000. Other top altcoins, such as Solana, Ethereum, and Polygon, are also in a bear market.

The XRP Ledger network has also faced some notable headwinds this year. For example, most tokens on XRPL, including Epic Chain and Sologenic, have all tumbled this year. Data compiled by CoinGecko shows that their market cap has dropped to $67 million.

This valuation is much lower than other top chains like Solana and Ethereum.

More data shows that the XRP Ledger has continued to gain market share in the decentralized finance (DeFi) industry. Data compiled by DeFi Llama shows that the network has gained a total value locked (TVL) of just $74 million. The TVL has dropped by 20% in the last 30 days.

XRPL’s TVL is a tiny amount in an industry with over $200 billion in assets. It is also significantly lower than other newly launched chains, such as Monad and Unichain.

XRP Price Technical Analysis

Technicals also explain why the XRP price has been in a strong downward trend in the past few months.

This token has traded below all moving averages. That shows that bears have prevailed. It has also formed a series of lower lows and lower highs. The token has also formed a descending channel, while its top oscillators have continued falling.

Therefore, the XRP price will likely remain under pressure as long as it remains in this channel and its moving averages.