XRP has been struggling to break free from its bearish trend, with its price hovering around the $2.10 mark for the past few days. And it’s not just recently – the token hasn’t managed a significant price surge in months. Even announcements like Trump’s crypto reserve discussions and Brad Garlinghouse’s hints at progress in the Ripple vs. SEC case sparked only brief rallies, quickly losing momentum.

So, let’s dive into some of the potential reasons behind XRP’s struggle to rally.

XRP Price Remains in the Red: Unpacking the Reasons

Today’s XRP price saw a slight dip of about 1%, trading at $2.11. Adding to the lackluster performance, its daily trading volume decreased by 18% to $3.51 billion. Looking at the past 24 hours, XRP peaked at $2.19 and dipped to $2.07, suggesting investors might be becoming more risk-averse. Interestingly, bucking the trend, XRP Futures Open Interest actually increased by 1%, presenting a mixed picture.

Adding to the uncertainty, a recent report suggests XRP could experience a price correction down to $1.5 if it fails to maintain its current support levels. So, let’s delve deeper into the factors preventing XRP from achieving a sustained rally.

Why Can’t XRP Price Break Out?

One potential reason for XRP’s recent dip could be Ripple’s transfer of 1 billion coins, triggering speculation within the market. Furthermore, insights from market expert Vincent Van Code highlight why XRP price surges often prove short-lived. Van Code points to the actions of major Bitcoin (BTC) whales as a key factor behind these brief pumps.

These so-called whales engage in buying and quickly selling off XRP, creating market fluctuations that arbitrage and trading bots try to smooth out, especially in the XRP/USDT trading pair. This pattern suggests that these large Bitcoin holders, who likely acquired their BTC at lower prices, might be using XRP for swing trading to maintain their market influence.

Van Code further points out that similar patterns have been seen in other pump-and-dump situations, which ultimately pushes the XRP/BTC ratio even lower than before the price spike. For XRP’s price to truly take off, Van Code argues that we need to see significantly higher trading volumes, in the neighborhood of $40-50 billion per day.

However, this presents a bit of a Catch-22 situation, as XRP’s price might actually need to climb above $5 to reach those kinds of trading volumes. Van Code suggests that a substantial wave of investment from major XRP institutions, or something dramatic like a “flipping of the switch,” would be needed for a lasting price surge. Until that happens, XRP price pumps are likely to remain fleeting.

What’s Next for XRP?

With XRP’s price still struggling to make any significant upward movement, analysts are now pointing towards crucial levels to keep an eye on. For instance, renowned expert Ali Martinez emphasizes the critical $2 support level, cautioning that if XRP falls below this point, we could see a drop down to around $1.2.

Meanwhile, market analyst EGRAG CRYPTO has offered a prediction for XRP’s April price movements, anticipating a volatile month with price swings at both ends of the spectrum. According to EGRAG CRYPTO’s analysis, XRP could dip back down to the $1.90-$1.79 range and also test higher levels around $2.80-$3.00, potentially offering a 62-70% upside from the lower end.

Furthermore, this analyst suggests the market is currently experiencing a “boredom phase,” but predicts a significant “blastoff” after XRP revisits the $2 level one more time. These forecasts indicate that XRP’s price is likely to see considerable volatility in the coming weeks, with the possibility of both upward and downward swings.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.