- XRP price has been flat since the first week of February.
- Spot XRP ETFs had their first month of outflows.
- The market capitalization of the Ripple USD dropped to $1.2 billion.
XRP price has remained in a narrow range in the past two months. It was trading at $1.3330 on Wednesday, within a range it has been in since February this year, and 45% below its January high. This Ripple price prediction explores what to expect in April as the RLUSD demand wanes.
XRP Price Wavered Amid Ripple ETF Outflows
The XRP token wavered amid weak investor demand. A good example of this is in the exchange-traded fund (ETF) market, where all funds shed over $31 million in assets in March. It was the first month in which spot XRP ETFs had outflows.
The Canary XRP ETF ended the month with $264 million in assets, while Bitwise’s XRP and Franklin Templeton’s XRPZ had $261 million and $214 million in assets, respectively.
The same bearish trend occurred in the futures market, where open interest fell to $2.4 billion on Wednesday. This open interest has remained in this range since the first week of February this week. The open interest has dropped sharply from last year’s high of $10.8 billion, a sign that demand has lost momentum.
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Meanwhile, demand for the Ripple USD (RLUSD) stablecoin has plummeted in the past few weeks. CoinMarketCap data shows that the RLUSD market capitalization has dropped from over $1.5 billion earlier this year to over $1.2 billion.
The number of addresses dropped to 14.5k, while the 5th adjusted volume dropped to $7 billion in the same period. This weakness happened even as the volume of stablecoin transactions soared, with North America leading with 45% of transaction value in transfers worth over $10 million.
Ripple Labs made some important milestones in the first quarter. For example, Binance listed RLUSD, while Ripple Labs obtained licenses in countries such as Brazil, Australia, the United Kingdom, and Luxembourg.
Looking ahead, the XRP price action in April will depend on the ETF inflows, open interest, and the broader performance of Bitcoin and other altcoins.
Ripple Price Prediction: Technical Analysis
The daily timeframe chart shows that the Ripple price has remained in a narrow range in the past few weeks. It has remained inside a narrow channel between the support and resistance points at $1.2893 and $1.6047.
This consolidation occurred after the coin dropped sharply, suggesting a bearish flag pattern. It remains below the 50-day Exponential Moving Average (EMA), while the Supertrend indicator is red.
Therefore, the most likely XRP price prediction is bearish, with the initial target being the year-to-date low of $1.1230, its lowest level in February this year, which is about 16% below the current level.
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