Key Takeaways
- XRP has decreased by 7% over the past 24 hours, now trading at $2.20 per coin.
- This decline comes as the broader cryptocurrency market faces a correction.
XRP Continues to Decline Despite Ripple’s Efforts to Accumulate More Tokens
XRP, the native coin of the Ripple ecosystem, has dropped 7.5% in value over the past 24 hours, trading at $2.20. This decline occurs despite Ripple Labs’ initiatives to raise at least $1 billion through a special purpose vehicle aimed at accumulating XRP.
According to Bloomberg, this funding round will be conducted via a special purpose acquisition company (SPAC), with the funds being managed in a new digital asset treasury structure. The report further noted that Ripple plans to contribute some of its own XRP holdings.
Additionally, Ripple announced on Thursday that it has acquired GTreasury, a provider of corporate treasury software, in a deal valued at $1 billion. Ripple is expanding its foothold in financial services through acquisitions, having also purchased the stablecoin payment company Rail and brokerage firm Hidden Road earlier this year.
Ripple revealed that GTreasury’s treasury platform, utilized by Fortune 500 firms to manage cash, currencies, and risks, will now be integrated into its suite of financial tools.
XRP May Drop Below $2 as Bullish Momentum Weakens
The XRP/USD 4-hour chart indicates bearish momentum, showing that the price faced resistance around the lower trendline of a descending wedge model earlier this week. It has lost 7.5% in value over the past 24 hours, now trading below the daily support level of $2.35.
The RSI reading of 37 indicates that bears are currently in control, with MACD lines also signaling selling pressure. As of press time, XRP is trading at $2.216 per coin. If the correction continues, XRP could extend its decline towards the next daily support level at $1.96. The low of $1.77 from last Friday may also be revisited if the bearish trend persists.
Conversely, if XRP rebounds, it could extend gains towards the 200-day EMA at $2.62 in the coming hours. The resistance level of $3 remains a medium-term target for the time being.
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