XRP has been under continuous pressure due to the recent bearish trend in the overall cryptocurrency market. The token remains in a short-term downward trend, which is attributed to the macro bearish sentiment and ongoing skepticism among investors.
Despite these circumstances, Ripple's business progress continues. This can provide long-term support for the stability and recovery of the XRP price.
RLUSD listed on Binance
Ripple recently confirmed that its dollar-pegged stablecoin RLUSD has been listed on Binance. This listing is crucial as it expands the visibility and accessibility of RLUSD, especially amid the global acceleration of stablecoin adoption. As usage increases, its role within the digital payment and payment infrastructure of the issuing ecosystem will be further strengthened.
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RLUSD currently operates on the Ethereum network, but future expansion to the XRP Ledger could also be an important variable. Integration with XRPL is expected to enhance on-chain utility, trading demand, and network activity. This could allow Ripple to benefit from the growth of tokenization and cross-border payments, indirectly supporting XRP's fundamental outlook.
Selling pressure from XRP holders
Despite these advancements, XRP holders remain cautious. On-chain data indicates that net realized profit and loss switched to negative in the recent session. Investors are selling XRP at prices lower than their purchase price, which reflects behavior related to fear of further declines rather than confidence in short-term recovery.
These realized losses reflect hesitation among individual investors. Continued selling pressure in a bear market can delay momentum shifts. Until investor confidence finds stability, XRP may struggle to translate the development of the Ripple ecosystem into immediate price increases.
Institutional investors exhibit conflicting signals. In the week ending January 16, XRP saw a net inflow of institutional funds amounting to $69.5 million. Cumulative net inflow this month reached $101.8 million, a result that emerged despite XRP maintaining a downward trend. This persistence suggests that large investors are maintaining long-term confidence.
Institutional fund flows often accumulate during pessimistic sentiment phases, so they often precede trend reversals. Steady inflows support liquidity and reduce the risk of further declines. As individual investors' caution and institutions' confidence diverge, XRP may establish a bottom for recovery.
As of the time of writing, XRP is trading around $1.96. It has remained below the downtrend line that has lasted for more than two weeks. While technical pressures persist, improvements in fundamentals and increases in institutional demand raise the potential for a breakout. Breaking free from the downtrend could lead to significant changes in short-term momentum.
If it breaks clearly above the downtrend line, XRP has the potential to break above the psychological level of $2.00. A breakout at $2.03 opens up room for an increase to $2.10. If momentum continues, a recovery to around $2.35 can be expected in the short term.
If XRP fails to recover to $2.00, the bullish scenario weakens. If it faces resistance in this range, selling pressure may become strong again. In such a situation, XRP's price may drop to $1.86 or below, undermining the bullish narrative and continuing the existing downtrend.
