The XRP price dropped 5.2% in the past 24 hours, trading at $2.31 on Saturday and underperforming other top-five cryptocurrencies. While Bitcoin surged to a new all-time high of $111,807, fueled by record ETF inflows, XRP failed to capitalize on the bullish momentum. This divergence has raised questions about Ripple’s competitive edge—especially as traditional financial institutions advance into the stablecoin space.
Ripple (XRP) Lags Behind Crypto Rally Amid Macro and Sector Pressures
Despite a strong upward trend in the broader crypto market, Ripple’s XRP struggled to maintain momentum. On Friday, Bitcoin benefited from renewed institutional interest triggered by geopolitical developments, including former President Donald Trump’s proposed 50% tariffs on EU imports. However, XRP did not follow suit.
According to CoinGecko, XRP declined from $2.44 to open Saturday at $2.31—a 5.1% drop. It became the worst-performing asset among the top five by market cap. In contrast, Bitcoin, Ethereum, Solana, and BNB all posted smaller losses or gains, with daily movements staying under 5% at press time.
This underperformance reflects growing investor skepticism about Ripple’s ability to maintain relevance in an increasingly competitive stablecoin landscape—particularly with legacy financial giants entering the arena.
JPMorgan-Led Banks Explore Wall Street Stablecoin Initiative
A major catalyst behind the XRP sell-off was news that JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are jointly exploring a USD-backed stablecoin initiative. Reported by The Wall Street Journal, this “Wall Street stablecoin” is still in early conceptual stages but aims to use blockchain infrastructure providers like Early Warning Services and The Clearing House to enhance payment efficiency and reduce cross-border friction.
Such a move could significantly challenge crypto-native stablecoins like Ripple’s RLUSD, Circle’s USDC, and Tether (USDT), especially in institutional adoption.
Ripple’s RLUSD Faces Institutional Competition
Ripple launched RLUSD in March 2025 as a regulated U.S. dollar-pegged stablecoin available on both the XRP Ledger and Ethereum. Fully backed by U.S. dollar reserves and short-term Treasuries, RLUSD supports RippleNet and its On-Demand Liquidity (ODL) solutions for financial institutions.
As of May 24, 2025, RLUSD had reached a market capitalization of $310 million, signaling growing traction in enterprise-grade payments. However, the potential launch of a bank-backed digital dollar threatens to erode RLUSD’s market share among traditional finance players who may favor a product endorsed by major U.S. banks.
Derivatives Data Signals Bearish Sentiment for XRP
Market sentiment around XRP turned cautious as derivatives data revealed declining confidence among traders.
Open interest in XRP futures fell by 1.47% to $4.89 billion, indicating de-leveraging and reduced speculative positioning. Coinglass data shows a 1.5% decline over 24 hours, with over $50 million in open contracts unwound.
Meanwhile, trading volume spiked by 51.84% to $6.97 billion—pointing to intense selling pressure. Options markets also saw increased activity: open interest rose 47.99% to $1.69 million, while options volume doubled to $16,570. This surge suggests traders are hedging against further volatility following the Wall Street stablecoin announcement and upcoming tariff policies.
Liquidation data confirms bearish momentum: $14.88 million in long positions were wiped out, compared to just $1.02 million in short liquidations. Notably, $5.02 million of longs were liquidated within a 12-hour window—indicating many leveraged bulls were caught off guard by the negative news flow.
If open interest continues to decline toward $4.5 billion, technical support levels at $2.20 and $2.10 could be tested.
Technical Outlook: XRP Price Struggles Below Key Moving Averages
At press time, XRP traded at $2.3066, down 5% from Friday’s levels. The technical picture leans bearish as price action has dipped below both the 9-day ($2.3697) and 21-day ($2.3556) moving averages for the first time since early May.
This breakdown signals weakening short-term momentum. The Relative Strength Index (RSI) stands at 48.46—below the neutral 50 threshold—and diverging from its moving average of 56.86, suggesting bearish momentum is building.
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For bulls to regain control, XRP must reclaim $2.37 with strong volume. A daily close above this level could reignite momentum toward $2.45 and eventually challenge $2.60. Conversely, continued weakness may push price toward the $2.08–$2.10 support zone.
Bitcoin’s consolidation above $108,000 offers some macro-level support, but altcoins like XRP lack strong follow-through. Repeated failure to break above $2.40 undermines bullish breakout attempts and reflects lingering uncertainty.
Frequently Asked Questions (FAQs)
Why did XRP price drop today?
The decline was primarily driven by concerns over Ripple’s ability to compete with a proposed Wall Street-backed stablecoin initiative led by major U.S. banks.
Can XRP recover in the short term?
Yes—if XRP holds above $2.20 and futures open interest rebounds past $5 billion, a recovery toward $2.45 is possible.
How does the Wall Street stablecoin threat affect RLUSD?
It poses a direct challenge to RLUSD’s institutional adoption, especially if large banks back their own regulated digital dollar token.
What are the key support levels for XRP?
Immediate support lies at $2.20, followed by $2.10 and $2.08 if selling pressure continues.
Is Bitcoin’s rally helping XRP?
Only marginally. While Bitcoin’s strength provides a positive macro backdrop, sector-specific risks are limiting XRP’s upside.
What would flip XRP sentiment bullish again?
A decisive daily close above $2.37 with rising volume and stabilizing derivatives metrics would signal renewed bullish momentum.
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