XRP price has pulled back in the past few months and constantly remains in a technical bear market as demand from investors continues falling. Ripple token was trading at $1.3115 on Friday, down by over 60% from its all-time high of $3.6. This consolidation continued despite the major progress that Ripple Labs is making.
Ripple Labs launches Treasury system for fiat and crypto assets
XRP price has remained in a bear market even after Ripple Labs launched a treasury system that unifies fiat and crypto assets, especially Ripple USD (RLUSD). The solution is connected to over 13,000 global banks alongside on-chain assets.
It is part of Ripple’s strategy to integrate G-Treasury, which it acquired last year in a $1.2 billion deal. G-Treasury was later on rebranded to Ripple Prime, and is used to manage the corporate treasury of top companies like Rubix, Volvo Cars, Good Year, and Canadian Tire.
In another announcement, the company partnered with Convera, a top player in commercial payments. The partnership will enable Convera to offer crypto-enabled payment and treasury solutions for businesses. It will enable faster and more reliable cross-border payments. In a statement, Aaron Slettehaugh, a senior executive at Ripple said:
“By partnering with Convera, we’re combining a trusted global payment infrastructure with stablecoin-powered settlement to give businesses more control over how and when they move value across borders.”
XRP demand is fading
XRP price has stagnated despite these good news because of its fading demand among investors.
Data shows that demand for spot XRP ETFs has waned, with their outflows in March rising to over $30 million. The funds have already shed over $1.2 million this month, bringing the cumulative total net inflows to $1.21 billion. All these funds now hold over $916 million in assets.
The same trend is happening in the spot market, where the daily volume dropped to $1.9 billion. In the past, it was common for the daily volume of the XRP token to be over $10 billion.
The futures open interest has also plunged in the past few months. Data shows that the futures open interest has tumbled to $2.4 billion from last year’s high of over $11 billion. The open interest continued its strong downward trend after October 10 when liquidations surged to over $20 billion.
XRP price prediction: Technical analysis
Ripple price chart | Source: TradingView
The daily timeframe chart shows that the XRP price has slumped in the past few months, falling from a high of $3.6 in July last year to $1.31 today. It formed a death cross pattern on March 2nd as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other.
The coin is now forming a bearish flag pattern, which is made up of a vertical line and a horizontal channel. It also remains below the Supertrend indicator and the Ichimoku cloud.
Therefore, for most likely XRP price forecast is bearish, with the next key target being at $1, which is about 23% below the current level.
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