XRP Price Holds Strong at $2.13 as the Broader Market Witnesses Increased Volatility This Week

Ripple's XRP token might soon take off, as the Q1 report notes multiple key wins hinting at a strong 2025.

The price of XRP has come down slightly from $2.33 to $2.11, reporting a 10% drop over the past 7 days.

However, this fall has formed a falling wedge pattern, which is usually seen to give an upside breakout as the selling pressure lessens.

On the price chart, between April 28 to May 6, XRP formed two distinct lower highs and lower lows. Connecting these swing highs and lows forms the falling wedge setup. This pattern predicts a 10% rally to $2.36 on a successful breakout above the wedge’s upper trend line at around $2.14.

Currently, XRP is trading at the 61.80% Fibonacci level of $2.13. Together with the key Fibonacci support, the demand zone lies between $2.13 and $2.14.

Moreover, due to the short-term decline, the 50 and 200 EMA lines are indicating a death cross event in the 4-hour chart.

Furthermore, the 4-hour RSI line is closely following the oversold boundary level. This indicates the short-term decline in bullish momentum, which is cycling down within the wedge pattern.

In case of a bullish breakout, once the broader market stabilizes, the Fibonacci levels are presenting a short-term price target at the $2.50 psychological level. In a bullish case, the Fibonacci levels are extending the price target from $2.75 to $3.15.

On the flip side, the crucial support below the wedge pattern is the 50% Fibonacci level, which coincides with the $2 psychological mark.

Highlighting multiple key developments in Q1 2025, the report sheds light on the key wins achieved by Ripple.

As the administration took a more favorable stance toward crypto in Q1 2025, leading to positive developments, the report notes Trump’s executive order to support crypto, Paul Atkins becoming the SEC chairman, and bipartisan support for stablecoins.

Beginning with the institutional interest in XRP-based products, Franklin Templeton has filed an S-1 form for an XRP-based ETF and Volatility Shares has filed for three XRP ETFs. Moreover, Brazil’s CVM has approved a dedicated XRP ETF, while CME Group has launched the XRP Futures.

In total, the XRP investment products saw weekly outflows of $37.7 million, bringing the year-to-date inflow to $214 million. The XRP investment product is just $1 million behind the global Ethereum funds.

The on-chain data witnessed a cool-down phase in Q1 2025, reporting a 30-40% decline in both new wallet creation and overall transaction volume on the XRP ledger. Notably, the DEX volume has decreased by 16% on a quarter-to-quarter basis.

However, one of the key drivers of on-chain activity is emerging as Ripple’s stablecoin RLUSD. Its market cap has crossed $90 million, and it has clocked a cumulative DEX volume of more than $300 million.

Aiming to market RLUSD as an enterprise-grade USD-backed stablecoin with real-world utility, the company will likely leverage its collateral across prime brokerage products. This could make RLUSD the first stablecoin to enable cross-margining between the digital asset space and traditional markets.

The company also highlights the completion of its Hidden Road acquisition for $1.25 billion, rendering it one of the largest-ever disclosed digital asset acquisitions. Hidden Road is one of the fastest-growing prime brokers in the world.

This move is pivotal as it broadens the scope of operations and expands into a new segment of the market. The company is concentrating on expanding its product offerings and catering to a wider audience.