XRP Price Has Continued To Stay In The Red, Consolidating In The $2.10 Range Over The Past Few Days

Besides, Ripple's coin has also failed to showcase a strong breakout over the past few months. Although the crypto has recorded massive pumps after Trump's crypto reserve announcement and Brad Garlinghouse's comment on a potential conclusion in the Ripple Vs SEC case, the rally was short-lived.

In the turbulent world of cryptocurrencies, XRP, the digital asset developed by Ripple, has been a subject of keen interest among traders and investors. After a period of consolidation in the $2.10 range and a lackluster breakout attempt, the crypto’s price has continued to stay in the red.

Despite the recent attention due to Trump’s crypto reserve announcement and Brad Garlinghouse’s hint at a potential conclusion in the Ripple Vs SEC case, which saw the crypto record massive pumps, the rally was quickly absorbed by the bears.

After a 1% decline, XRP price today traded at $2.11, while its 24-hour volume went down 18% to $3.51 billion. The crypto touched a 24-hour high and low of $2.19 and $2.07, showcasing the waning risk-bet appetite of the investors. However, XRP Futures Open Interest went up 1%, contrasting the current market trend.

Amid this, the latest report showed that XRP might face a correction to $1.5 if it fails to hold key support and here are some of the reasons that might be stalling the rally in the asset’s price.

Why Is XRP Price Failing To Showcase Strong Breakout?

The recent dip in XRP could be due to Ripple’s transfer of 1 billion coins, which has sparked market speculations.

Besides, recent observations by market expert Vincent Van Code highlight the fleeting nature of XRP surges. A significant factor contributing to the brief pumps is the activities of large Bitcoin (BTC) whales, engaging in buying and dumping activities.

These whales are pivoting their attention to pump XRP, an effect that arbitrage and trading bots try to balance, especially in the XRP/USDT market. This pattern suggests that BTC whales, likely holding substantial Bitcoin at low costs, might be involved in XRP swing trading to maintain their dominance.

Meanwhile, Van Code mentions that similar patterns have been noted in other pump-and-dump scenarios, ultimately leading to the XRP/BTC ratio declining from pre-pump levels.

For XRP price action to gain traction, Van Code opines that significantly higher trading volumes, perhaps around $40-50 billion daily, would be required. However, this seems like a Catch-22, as the price would need to rise above $5 to achieve such figures.

The expert suggests that a substantial influx of investment from major XRP institutions or a “flipping of the switch” would be necessary for sustained price increases. Until then, we can expect to see these pumps quickly absorbed by the bears.

What Lies Ahead For Ripple’s Coin?

As the XRP price failed to show any strong moves, analysts are highlighting key levels to watch ahead. For context, renowned expert Ali Martinez has highlighted the importance of the $2 support level, warning that a failure to hold this mark could trigger a retreat to around $1.2.

Meanwhile, market analyst EGRAG CRYPTO has shared a forecast for XRP’s April candle formation, predicting a dynamic month with tests at both ends of the range. According to EGRAG CRYPTO, XRP price will likely revisit the lows around $1.90-$1.79 and test the upper range at $2.80-$3.00, with potential for a 62-70% upside from the lowest point.

In addition, the analyst noted that the market is currently in a “boredom phase” but anticipates a significant blastoff after Ripple’s coin revisits the $2 region one last time.

These predictions suggest that XRP’s price may experience significant fluctuations in the coming weeks, with the potential for both downward and upward movements.