XRP continues to be traded under pressure as weakness in the broader cryptocurrency market weighs on sentiment. The token is in a short-term downward trend, driven partly by macroeconomic bearishness and partly by persistent skepticism among investors.
Despite this, Ripple's operational progress continues, which may provide potential long-term support for stability and upward movement in the XRP price.
RLUSD listed on Binance
Ripple has recently confirmed that their US dollar-backed stablecoin, RLUSD, has been listed on Binance. The listing increases RLUSD's visibility and availability, which is crucial as the adoption of stablecoins grows globally. Increased usage typically strengthens the issuing ecosystem's relevance in digital payments and settlements.
Do you want more token insights like this? Subscribe to editor Harsh Notariya's daily crypto newsletter here.
Although RLUSD is currently operating on the Ethereum network, future expansion to the XRP Ledger could become significant. Integration with XRPL will enhance on-chain utility, transaction demand, and network activity. This development positions Ripple to benefit from growth in tokenization and cross-border settlements, and may indirectly strengthen XRP's fundamental outlook.
XRP holders are selling.
Despite these advancements, XRP holders remain cautious. On-chain data shows that net realized gains and losses have turned negative in recent sessions. Investors are selling XRP below the purchase price, a behavior often linked to fears of further declines rather than confidence in imminent gains.
This realization of losses reflects hesitation among private investors. Persistent selling under weakness can delay a shift in momentum, even when fundamentals improve. Until investor confidence stabilizes, XRP may struggle to translate Ripple's ecosystem progress into immediate price increases.
Institutional behavior provides a contrasting signal. In the week ending January 16, XRP recorded institutional crypto inflows of $69.5 million. For the current month, inflows have reached $108.1 million, although XRP remains in a downward trend. Such consistency suggests that larger investors have long-term faith.
Institutional inflows often precede trend reversals, as these participants tend to accumulate when sentiment is pessimistic. Persistent inflows provide liquidity support and reduce downside risk. This divergence between cautious private and confident institutional investors could help XRP establish a foundation for upward movement.
XRP is trading near $1.96 at the moment, still below a downward trend line that has been active for over two weeks. Technical pressure persists, but improved fundamentals and institutional demand increase the likelihood of a breakout. Breaking out from the downtrend would signify a significant shift in short-term momentum.
A confirmed movement above the downward trend line is likely to send XRP above the psychological level of $2.00. If $2.03 is broken, the path may open towards $2.10. If momentum builds up, the upward target near $2.35 is within reach in the short term.
The bullish scenario weakens if XRP fails to reclaim $2.00. Rejection at this level could lead to new selling pressure. In that case, the XRP price may fall towards $1.86 or lower, invalidating the bullish premise and extending the current downtrend.