XRP price declined this week, reaching its lowest level since October as liquidations increased and the crypto market declined. Ripple was trading at $1.60 on Wednesday, down by 35% from its highest level this year. Will it rebound, or will its ongoing decline persist as its RWA growth continues?
XRP Price Has Crashed Despite Some Key Good News
Ripple price continued its strong downward momentum this week as the crypto market meltdown intensified. This crash may persist due to the increasing likelihood of war in the Middle East.
Donald Trump is considering striking Iran, which has warned of a regional conflict. For one, it is highly unlikely that Iran will accept the new demands from Trump, including reducing its ballistic missile stockpile and ending the support for regional proxies.
XRP price has crashed despite some major good news. One of them is that Ripple has acquired several major licenses as it continues its global expansion. It received a European license this week, shortly after obtaining licenses from the UK and Singapore. The company also received a banking license from the UK.
Meanwhile, the XRP Ledger is becoming a major player in the real-world asset (RWA) tokenization industry. In a statement this week, Ctrl Alt stated that it would tokenize diamonds valued at over $120 million on XRPL.
Data show that the amount of assets on the XRPL has increased by over 270% in the last 30 days, reaching over $1.47 billion. Its stablecoin market cap has also jumped by 20% to $422 million, while the 30-day stablecoin transfer volume rose by 44% to $1.133 billion.
Ripple Price Prediction: Technical Analysis
The daily chart shows that the XRP price continued its downward trend this week. It remains below the Supertrend indicator and the 50-day Exponential Moving Average (EMA).
The Relative Strength Index (RSI) has moved to the oversold level of 30, while the Average Directional Index (ADX) has moved to 38. A rising ADX indicates that momentum is continuing.
Therefore, the most likely XRP price forecast is bearish, with the next target at $1.3793, its lowest level in October 2021. A drop below that price increases the likelihood of the coin falling to $1.
XRP and other cryptocurrencies will then rebound later this year as investors begin to buy the dip. It will also rebound when the Middle East crisis potentially ends later this year.
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