Key Takeaways
- XRP has experienced a 7% decline over the past 24 hours, trading now at $2.20 per coin.
- This downward trend occurs amidst a broader correction in the cryptocurrency market.
XRP Faces Decline Despite Ripple’s Efforts to Accumulate Tokens
XRP, the native coin of the Ripple ecosystem, has suffered a 7.5% drop in value over the last 24 hours, now trading at $2.20 per coin. This decline comes as Ripple Labs spearheads a strategy to raise at least $1 billion through a special purpose acquisition company (SPAC) aimed at accumulating more XRP.
According to a report from Bloomberg, the fundraising initiative will funnel funds into a new digital asset treasury structure. Ripple is also expected to contribute part of its own XRP holdings to this effort.
On Thursday, Ripple announced the acquisition of GTreasury, a corporate treasury software provider, in a deal valued at $1 billion. Through this acquisition, Ripple aims to expand its financial services, having also purchased the stablecoin payment firm Rail and brokerage firm Hidden Road earlier this year.
GTreasury’s treasury platform, utilized by Fortune 500 companies for managing cash, currencies, and risks, will become part of Ripple’s financial tools suite.
XRP May Drop Below $2 as Bullish Momentum Weakens
The XRP/USD 4-hour chart appears bearish after the coin faced resistance near the lower trendline of a descending wedge earlier this week. It has lost 7.5% of its value in the past 24 hours and is currently trading below the daily support level of $2.35.
The Relative Strength Index (RSI) stands at 37, indicating that bears are currently in control, with MACD lines also signaling selling pressure. As of this writing, XRP is trading at $2.216. If the correction continues, XRP could test the next daily support at $1.96, with last Friday’s low of $1.77 potentially revisited if the downward trend persists.
Conversely, if XRP regains some momentum, it may attempt to rally towards the 200-day EMA at $2.62 in the coming hours, with the $3 resistance level remaining a medium-term target for now.
