Key takeaways
- XRP dropped 7% in the last 24 hours and is now trading at $2.20 per coin.
- The bearish move comes as the wider crypto market undergoes a correction.
XRP continues to decline despite Ripple’s efforts to accumulate more tokens
XRP, the native token of the Ripple ecosystem, lost 7.5% of its value over the past 24 hours and is currently trading around $2.20 per coin. This downward move comes even as Ripple Labs pursues a plan to raise at least $1 billion through a vehicle focused on accumulating XRP.
Bloomberg reported the funding round will be executed through a special purpose acquisition company (SPAC), with assets held in a new digital asset treasury (DAT) structure. The report added that Ripple intends to contribute some of its own XRP holdings to the vehicle.
In addition, Ripple announced on Thursday that it has acquired GTreasury, a corporate treasury software provider, in a transaction valued at $1 billion. Ripple is expanding into financial services through acquisitions; earlier this year it bought Rail, a stablecoin payments company, and prime broker Hidden Road.
Ripple said the GTreasury platform, used by Fortune 500 companies for cash, FX and risk management, will now be integrated into its suite of financial tools.
XRP could fall below $2 as bullish momentum weakens
The XRP/USD 4-hour chart appears bearish and inefficient after the coin met resistance near the lower trendline of a descending wedge formation earlier this week. It has lost 7.5% in the last 24 hours and is trading below the daily support at $2.35.
An RSI reading near 37 indicates bears currently hold the upper hand, while MACD lines also signal selling pressure. At the time of writing, XRP trades at $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 also be revisited if the bearish trend persists.
Conversely, if XRP mounts a recovery it could attempt to retake the 200-day EMA around $2.62 in the coming hours. The $3 resistance level remains a medium-term target for bulls.