The XRP market is navigating turbulent waters as downward pressure intensifies, despite bullish long-term projections from Ripple’s leadership. With price action weakening below key technical resistance levels, investor sentiment has turned cautious. Yet, amid the short-term bearish trend, institutional interest in XRP continues to grow—highlighting a growing disconnect between market performance and fundamental adoption.
XRP Dips Below Key Moving Averages
XRP’s decline has gained momentum after failing to reclaim a critical confluence resistance formed by the 50-day and 100-day Exponential Moving Averages (EMAs). Currently trading around $2.25, the asset has shed nearly 1% in intraday movement and is down approximately 15% from its recent high of $2.65 set on May 12. This retreat underscores waning buying pressure and growing dominance by bearish forces in the near term.
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The broader cryptocurrency market has also exhibited muted reactions to macroeconomic developments. Despite a U.S.-China trade framework agreement—which includes revised tariff structures and expanded educational access—crypto prices remained largely unaffected. This lack of reaction suggests that digital assets are increasingly decoupling from traditional financial catalysts, instead focusing on internal adoption metrics and technological milestones.
Ripple CEO Targets 14% of SWIFT’s Liquidity
At the XRP Ledger Apex 2025 summit, Ripple CEO Brad Garlinghouse unveiled an ambitious vision: capturing 14% of SWIFT’s global liquidity within five years. While SWIFT remains the dominant messaging network for international financial transactions, Garlinghouse emphasized that Ripple isn’t aiming to replace SWIFT’s communication layer but rather to disrupt its liquidity infrastructure.
“SWIFT today has two components: Messaging and liquidity,” Garlinghouse explained. “Liquidity is owned by banks. I think less about the messaging and more about liquidity. If you’re driving all the [liquidity], it’s good for XRP. So, in five years, I’d say 14%.”
This strategy hinges on RippleNet’s On-Demand Liquidity (ODL) solution, which leverages XRP to enable instant cross-border settlements without pre-funded nostro accounts. ODL is already in use by major financial institutions such as MoneyGram, Santander, and SBI Holdings. By reducing capital lock-up and settlement times, ODL presents a compelling alternative to traditional correspondent banking models.
While full integration with SWIFT remains unlikely—especially as SWIFT advances its own blockchain-based ISO 20022 upgrade scheduled for November—Ripple’s focus on liquidity rather than messaging positions XRP as a complementary force in modernizing global finance.
Institutional Adoption Gains Momentum
Despite short-term price weakness, institutional confidence in XRP is strengthening. Singapore-based Trident Digital Tech Holdings (NASDAQ: TDTH) recently announced the creation of a $500 million XRP treasury, signaling a significant vote of confidence from public-market investors.
The fund, advised by Chaince Securities LLC, will acquire XRP tokens as part of a long-term strategic reserve. In addition to holding, Trident plans to diversify into staking mechanisms to generate yield, showcasing a maturing approach to digital asset management.
“Through this initiative, Trident aims to demonstrate how public companies can thoughtfully and responsibly participate in the ongoing development of decentralized finance,” said Soon Huat Lim, Trident’s founder and CEO.
The rollout is expected in the second half of 2025, pending regulatory approvals and favorable market conditions. This move not only bolsters XRP’s credibility but also sets a precedent for other publicly traded firms considering crypto treasury allocations.
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Technical Outlook: Downside Risks Loom
From a technical perspective, XRP faces mounting downside risks. The price is currently trading below a broken support level at $2.26, which now acts as short-term resistance. This level coincides with the convergence of the 50-day and 100-day EMAs—a bearish indicator that often precedes further declines.
A sustained close below this confluence could accelerate selling pressure, potentially driving XRP down by another 7% toward the 200-day EMA at $2.09. The Relative Strength Index (RSI) has dipped below the 50 midpoint, reinforcing the bearish momentum.
However, there are glimmers of bullish potential. The Moving Average Convergence Divergence (MACD) has maintained a buy signal since Monday, with the blue MACD line positioned above the red signal line. If this momentum holds, it could encourage traders to accumulate XRP, potentially triggering a breakout above the current descending channel.
Key resistance zones to monitor include $2.34 (seller congestion), $2.50 (previous consolidation area), and $2.65 (recent peak). A reclaim of these levels would be necessary to restore bullish sentiment.
Frequently Asked Questions
Q: What is Ripple’s On-Demand Liquidity (ODL)?
A: ODL is a solution that uses XRP to facilitate instant cross-border payments by eliminating the need for pre-funded accounts. It allows financial institutions to settle transactions in real time with lower capital requirements.
Q: Can XRP realistically compete with SWIFT?
A: While XRP isn’t designed to replace SWIFT’s messaging system, it aims to modernize the liquidity layer of international transfers. Ripple’s focus on faster settlement and reduced costs makes it a strong contender for complementing or partially displacing traditional liquidity mechanisms.
Q: Why is institutional adoption important for XRP?
A: Institutional involvement brings credibility, long-term holding pressure, and increased utility. Initiatives like Trident’s $500 million treasury signal growing recognition of XRP as a strategic digital asset.
Q: What are the key support levels for XRP?
A: The next major support lies at $2.09—the 200-day EMA. A break below this level could open the door to further declines, while defense of this zone may trigger a technical rebound.
Q: How does staking contribute to XRP’s value?
A: While XRP itself isn’t stakable on its native ledger, institutions can participate in yield-generating mechanisms through third-party platforms or XRPL-based DeFi protocols, enhancing asset utility and demand.
Q: What role does market sentiment play in XRP’s price movement?
A: Like all cryptocurrencies, XRP is influenced by both technical trends and broader market sentiment. However, its unique positioning in cross-border payments gives it fundamental drivers distinct from purely speculative assets.
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Final Thoughts
While XRP faces short-term headwinds, the long-term narrative remains anchored in real-world utility and institutional adoption. The divergence between current price action and strategic developments—such as Ripple’s liquidity ambitions and corporate treasury initiatives—suggests that patient investors may find value in the current pullback.
As blockchain technology continues to reshape global finance, assets like XRP that bridge institutional infrastructure with decentralized innovation are poised for meaningful growth—provided regulatory clarity and market confidence continue to evolve.