Key takeaways
- XRP has fallen about 7% in the last 24 hours and is trading around $2.20 per coin.
- This decline comes as the wider cryptocurrency market undergoes a correction.
XRP continues to slide despite Ripple’s efforts to accumulate more tokens
XRP, the native token of the Ripple ecosystem, dropped roughly 7.5% in the past 24 hours and is now trading near $2.20 per coin. The decline comes even as Ripple Labs reportedly pursued a plan to raise at least $1 billion through a vehicle intended to accumulate XRP.
According to Bloomberg, the fundraising is expected to occur via a special purpose acquisition company (SPAC), with the proceeds held in a new digital asset treasury (DAT) structure. The report also stated that Ripple plans to contribute a portion of its own XRP holdings to the vehicle.
In another move, Ripple announced that it acquired GTreasury, a corporate treasury software provider, in a $1 billion transaction. The purchase underscores Ripple’s strategy of expanding into financial services through acquisitions; earlier this year the firm acquired Rail, a stablecoin payments company, and Hidden Road, a brokerage.
Ripple said GTreasury’s treasury platform, which is used by Fortune 500 companies to manage cash, foreign exchange and risk, will be integrated into its suite of financial tools.
XRP could slip below $2 as bullish momentum weakens
The XRP/USD 4-hour chart looks bearish and shows inefficiency after the price met resistance near the lower trendline of a descending wedge earlier this week. The token has lost about 7.5% over the past day and is trading below the daily support level at $2.35.
A 37 RSI indicates bearish control, while MACD lines also signal selling pressure. At the time of reporting, XRP trades around $2.216 per coin. If the correction continues, XRP could extend its decline toward the next daily support at $1.96. Last Friday’s low of $1.77 could come into play if downward momentum persists.
Conversely, a rebound could push XRP up toward the 200-day EMA at approximately $2.62 in the coming hours. The $3 resistance level remains a medium-term target for now.