XRP price had a fairly boring performance in the first half of the year as it erased some of the gains made in November. After peaking at $3.39 in January, Ripple is on track to end the month slightly above $2. This article explores the potential scenarios in July.
XRP Price Crashed Despite Major Progress
Ripple had one of the best starts to the year, with positive news continuing to come in. First, at least ten companies filed for a spot XRP ETF with the Securities and Exchange Commission (SEC).
These flings make it the most popular token among institutions, and there are signs that it will see high inflows once approved. For one, data shows that Ethereum and Bitcoin ETF inflows surged in the first part of the year, with Bitcoin nearing the $50 billion milestone.
Second, the XXRP ETF, which has an expense ratio of 1.89% has attracted over $135 million in assets in the last three months even as the XRP price dropped. That is another sign that there is demand for Ripple ETFs.
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Third, the Ripple USD (RLUSD) stablecoin has added over $430 million in assets, a figure that is expected to surpass $500 million by July. Its growth may accelerate after the Senate passed the GENIUS Act, which could hit Tether (USDT) if it fails to comply.
Third, the Securities and Exchange Commission (SEC) made efforts to end the lawsuit against the company. In a recent statement, Brad Garlinghouse, CEO of Ripple Labs, announced that the company would be dropping its cross-appeal and that the agency would follow suit. This means that the legal challenge that began in 2020 is now coming to an end.
Furthermore, CME Group listed XRP futures, which have shown substantial demand from investors. The XRP and Micro XRP futures have had a notional volume of over $542 million, with the majority of this volume originating from the United States.
The other notable XRP news came last week when Ripple Labs partnered with Wormhole to enable multichain operability on XRP Ledger.
Ripple Price Technical Analysis
The daily chart shows that the XRP price has declined significantly over the past few months, dropping from its year-to-date high of $3.4 to $2.2 today. It has plunged below the 50-day moving average, a bearish sign in technical analysis.
XRP has formed a symmetrical triangle whose two lines are about to converge. This triangle formed after it surged in November, making it a bullish pennant pattern.
Therefore, while the XRP price can break in either direction, there is a likelihood that it will have a bullish breakout in July. This performance will be confirmed if it moves above the descending trendline that makes the upper side of the triangle pattern.
A bullish Ripple price action will likely lead to more gains, potentially reaching the year-to-date high of $3.40.
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