XRP price retreated by over 2% on Tuesday despite some major bullish Ripple news, including the upcoming Permissioned DEX launch, RLUSD growth, and its valuation surge to $50 billion. The Ripple token was trading at $1.4560, down substantially from its all-time high of $3.5.
XRP Price Has Crashed Despite Some Major News
Ripple price remained under pressure on Tuesday as traders awaited the upcoming permissioned DEX launch, which is expected to happen on Wednesday this week. This launch will address a longstanding challenge in the decentralized finance industry.
That challenge is that large institutions cannot participate in the DEX industry due to compliance constraints. Some of these challenges are KYC, restricted access, and jurisdiction rules.
Therefore, Ripple Labs believes that the upcoming Permissioned DEX feature will change all this. It will introduce credential-gated trading, private liquidity pool, controlled market environments, and a hybrid routing between private and public order books.
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The launch follows Ripple Labs’ introduction of token escrow and personalized domains. Its developers aim for these tools to help drive XRP usage and token burn in the coming months.
Meanwhile, the growth of Ripple USD (RLUSD) continues, particularly following its listing on Binance, the largest cryptocurrency exchange. Its market capitalization has increased to over $1.5 billion, and its monthly transactions have continued to soar in the past few months.
Therefore, the XRP price is falling because of the ongoing crypto market crash that has affected all coins, including those with the best fundamentals. For example, the Polygon price is hovering near its all-time low despite its increasing role in the payments industry. Similarly, the Ethereum price has slipped despite its booming ecosystem.
Additionally, the coin retreated after analysts at Standard Chartered lowered their target by 65%, citing the ongoing crypto winter that has pushed its futures open interest much lower.
XRP Price Prediction: Technical Analysis
The daily timeframe chart shows that the XRP price has dropped and erased most of the gains made during the weekend. It has formed a gravestone doji candlestick pattern, which is made up of a long upper shadow and a small body.
The coin has remained below the important resistance level at $1.7932, its lowest level in October, November, and December this year. It was the lower side of the descending triangle pattern. It is also forming a bearish pennant pattern, composed of a vertical line and a symmetrical triangle.
The coin remains below the 50-day and 100-day Exponential Moving Averages (EMA) and the Supertrend indicator.
Therefore, the most likely XRP price forecast is bearish, with the next key target being the year-to-date low of $1.1245. A move above the resistance at $1.7932 will invalidate the bearish outlook.
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