Ripple’s XRP Slides Over 2% Despite Long-Term Bullish Institutional Sentiment

Recent selloffs reflect short-term pressure on XRP, even as companies and regulators move to adopt the token amid forecasts that it could hit $5 by 2027

Ripple’s XRP dropped by more than 2% over the last 24 hours to trade at $2.20, breaking below key support levels amid a surge in selling pressure.

The decline extended weekly losses to over 9%, wiping $6 billion off its market capitalization as technical weakness triggered a rush to exit positions.

The token’s downward move followed a volume spike exceeding 1.2 million units, confirming a bearish breakdown from its previous consolidation range.

Analysts highlighted a descending channel pattern and repeated failures to breach resistance at $2.27, suggesting sellers remain in control.

Above-average volume and failed breakouts confirm persistent downward momentum, according to CoinDesk Research’s technical analysis model.

Price Pressure Grows Despite Rising Strategic Adoption

XRP’s recent price action shows signs of continued weakness, with traders struggling to hold the line near the $2.10–$2.15 range.

However, technical analysts have also flagged a potential double bottom near $2.208 on rising volume, hinting at accumulation by longer-term players.

Open interest in XRP derivatives has now surpassed $4 billion, pointing to elevated liquidity that could support a reversal if sentiment shifts.

Meanwhile, Ripple is doubling down on its integration with traditional finance. In December 2024, the company announced its new stablecoin (RLUSD), and last April, it acquired cryptocurrency intermediary Hidden Road.

Its expanding efforts in regulated markets, such as a license from the Dubai Financial Services Authority and partnerships in the UAE, highlight XRP’s evolving use case in cross-border payments.

Besides the Slip, Institutions Bet Big on XRP’s Long-Term Value

While short-term sentiment has soured, institutional interest in XRP continues to build. China-based Webus International recently filed with the U.S. SEC to raise $300 million for an XRP-focused treasury initiative and Ripple-powered payment network.

UK-based energy firm VivoPower, backed by members of the Saudi royal family, also announced a $121 million XRP treasury strategy, as reported by Whale Insider X account.

Analysts suggest that such strategies, if adopted at scale, could materially shift XRP’s supply-demand balance.

Bullish Forecasts Underscore Divergence Between Price and Sentiment

Despite the ongoing correction, several market commentators believe XRP is still poised for long-term upside.

A recent analysis by The Motley Fool cited three catalysts that could drive XRP toward $5 by 2027: corporate treasury accumulation, regulated payment infrastructure, and a potential ETF approval.

The EU’s Markets in Crypto-Assets (MiCA) regulation and a new euro stablecoin launched on the XRP Ledger are seen as further signals of mainstream integration.

Still, analysts caution that any delay in these developments, or broader weakness in crypto markets, could weigh on prices in the near term.

As crypto strategist Dr Cat suggested in an X post on June 1, any bull run for XRP might be delayed until November 2025. He cited macroeconomic uncertainty and lagging institutional flows as key headwinds.

That view contrasts with more aggressive forecasts from bullish analysts like WatersAbove, who said on X on 31 May that “the bottom on XRP should be in by June 4th – 6th”, adding that the current dip may simply be part of “heavy manipulation” in the market.

“In the meantime, watch out for this week ahead,” the analyst added.

Original Post