XRP Price Prediction: Can XRP Rebound After Inflation Dip and Bearish Breakdown?

The XRP price is facing increasing downward pressure, with the altcoin sliding further from its recent highs as bearish sentiment takes control of the Ripple market.

Currently trading around $2.13, XRP has recorded a weekly drop of over 11%, shaking investor confidence and raising concerns about a potential deeper breakdown.

Technical indicators point to mounting selling pressure, with XRP caught in a descending channel on the 4-hour chart. Resistance remains firm around $2.48 and $2.62, making a quick recovery unlikely. The Chaikin Money Flow (CMF) stands at -0.17, suggesting persistent capital outflows, while the Awesome Oscillator (AO) and Parabolic SAR also confirm the bearish outlook.

“If XRP fails to recover the $2.27 support, the token could plunge to $1.92 or even $1.57,” analysts noted in a recent report.

Ripple Price Slumps Despite Cooling Inflation

The latest Ripple news is in sync with macroeconomic activity, namely the release of the U.S. Personal Consumption Expenditures (PCE) Price Index. Inflation is easing, with April’s core PCE dipping to 2.5%, its lowest since March 2021. This has had a negligible impact on crypto markets, such as Ripple XRP news.

XRP was trading at around $2.13, down 2.66% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

In fact, the market remains skittish on the back of fresh trade concerns. A federal appeals court has recently suspended a ruling that had suspended President Trump’s tariffs, creating uncertainty. While softer inflation should ideally underpin risk assets, the overall Ripple market reaction has been muted in our opinion due to ongoing geopolitical tension.

The value of Ripple currency dipped below $2.20 amid these incidents, with $30 million of leveraged XRP contracts getting liquidated in 24 hours. Long traders accounted for nearly all the losses, according to CoinGlass, further illustrating the market’s tilt toward caution.

Volatility Soars as Traders Exit Positions

The turbulence has triggered massive liquidations across Ripple exchanges, sparking concern among leveraged traders. Derivatives Open Interest (OI) fell sharply, even as trading volume surged 42% to $6.3 million. This divergence typically signals rising volatility and growing market uncertainty.

XRP is currently in sub-wave iii of a downward move, with a brief upward sub-wave iv expected before completing sub-wave v to finalize Sub-wave C of Wave 2 (circle). Source: AdamIdris2 on TradingView

The Moving Average Convergence Divergence (MACD) also flashed a sell signal, while the Relative Strength Index (RSI) is fast approaching the oversold threshold. Together, these indicators suggest that unless sentiment shifts soon, XRP may struggle to find strong buying support.

Despite the bearish trend, some analysts remain cautiously optimistic. “If XRP reclaims the golden pocket near the 0.618 Fibonacci level, a move back toward $3.00 could materialize,” one trader observed. However, that would require breaking through multiple resistance zones, including the 100-day and 50-day EMAs currently positioned at $2.26 and $2.29, respectively.

Institutional Adoption and Regulatory Updates Could Shift the Tide

Beneath the short-term gloom lies a broader narrative centered around institutional demand and the outcome of the XRP lawsuit. According to XRP lawsuit news, the SEC’s $50 million settlement with Ripple has reduced some legal overhang, although uncertainty persists around future enforcement actions.

Brazil has launched XRPH11, the world’s first spot XRP ETF, marking a major milestone for XRP adoption. Source: Amelie via X

Meanwhile, ETF-related developments are injecting cautious optimism. Brazil’s XRP ETF is already active, and more than 10 U.S. applications—including one from Franklin Templeton—are pending. “The fate of these ETFs could serve as a major catalyst,” said a market observer. The launch of Nasdaq’s XRP Futures ETF on May 23 also helped push sentiment momentarily higher.

Recent on-chain activity paints a mixed picture. While whale accumulation is at record levels, with 300,000 wallets holding 10,000+ XRP, other network metrics have declined. Transactions, new wallets, and fees fell 30–40% in Q1 2025, and active addresses plunged 44% in May. These stats could limit XRP value appreciation unless activity picks up.

Can Ripple’s Roadmap Reverse the Downtrend?

Looking ahead, several project-specific catalysts could influence XRP price prediction. Ripple’s upcoming stablecoin, RLUSD, is expected to launch later this year, complementing the Ripple ledger and cross-border payment solutions. However, some fear it could cannibalize XRP’s role in the ecosystem.

XRPUSDT is at weekly support, eyeing a bounce toward $2.57 and potentially $3 after a brief pullback. Source: Angela_altair on TradingView

The 38 billion XRP currently locked in escrow may also introduce volatility if released prematurely. Additionally, competition from SWIFT, Stellar (XLM), and central bank digital currencies (CBDCs) continues to challenge Ripple’s dominance in the cross-border payments space.

That said, partnerships like Ripple Bank of America and further adoption in institutional corridors may balance these headwinds. “The question is whether real-world utility can outpace speculative fatigue,” said a CoinMarketCap analyst.

XRP Price Prediction: A Tug-of-War Between Utility and Uncertainty

In the near term, XRP is navigating a tightrope between a potential breakdown below $2.00 and a rebound above $2.30. Technical analysis highlights the $2.14–$2.37 range as key support and resistance levels. A decisive move in either direction could define the next leg of XRP’s journey.

For now, Ripple crypto traders are advised to watch for confirmation of trend reversal indicators, rising volume on upswings, and any regulatory or institutional catalysts that could renew momentum. The coming weeks will be crucial in determining whether XRP remains on the defensive or stages a bold comeback.