XRP continues to trade under selling pressure. The overall weakness in the cryptocurrency market is dampening sentiment. The token is maintaining a short-term downward trend, influenced by the bearish mood of the macro environment and investors' persistent skeptical outlook.
Meanwhile, Ripple's business development is progressing. This may provide long-term support for the price stability and recovery of XRP.
RLUSD is listed on Binance
Ripple recently announced that the US dollar-backed stablecoin 'RLUSD' has been listed on Binance. The listing will increase the recognition and convenience of RLUSD. This is an important move as the adoption of stablecoins is accelerating worldwide. The expansion of usage tends to enhance the importance of the issuing ecosystem as a digital payment and payment infrastructure.
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RLUSD is currently operational on the Ethereum network, but if expansion to the XRP Ledger is realized in the future, it will hold significant meaning. Integration with XRPL will lead to on-chain utility, trading demand, and network activation. This trend is expected to benefit Ripple through the growth of tokenization and international payments, indirectly supporting XRP's fundamentals.
XRP holders are advancing sales
Even with these developments, XRP holders are maintaining a cautious stance. On-chain data shows that realized profits and losses have recently turned negative in the latest transactions. Investors are selling XRP below their acquisition price. This behavior indicates stronger concerns about declines than hopes for a short-term recovery.
Realizing losses reflects the hesitation of the retail layer. In a situation where sales continue amid weakness, even if fundamentals improve, the momentum shift will be sluggish. Until investor sentiment stabilizes, it will be difficult for XRP to immediately reflect the progress of Ripple's ecosystem in price increases.
On the other hand, the movements of institutional investors are sending contrasting signals. In the week up to January 16, the institutional inflow of XRP was $69.5 million. Cumulative inflows since the beginning of the month reached $101.8 million. Despite the downward trend of XRP, continuous capital inflows indicate the long-term conviction of large investors.
Institutional inflows often anticipate trend reversals. Participants like these tend to accumulate steadily in a pessimistic mood. Continuous inflows support liquidity and mitigate downside risks. The gap between retail caution and institutional confidence could become the foundation for an XRP price reversal.
As of the time of writing this article, XRP is trading around $1.96. It still has not broken above a downward trend line that has persisted for over two weeks. Technically, pressure continues, but improvements in fundamentals and expanding institutional demand increase the likelihood of a breakout. Escaping the downward trend could be a significant turning point for short-term momentum.
If the breakout above the trend line is confirmed, XRP is expected to surpass the psychological level of $2.00. Clearing $2.03 would open the path to reaching $2.10. If momentum increases, a recovery to around $2.35 in the short term also becomes a realistic possibility.
If XRP fails to break above $2.00 again, the bullish scenario will retreat. If pushed back at this level, selling pressure could strengthen again. In that case, XRP's price could drop to $1.86 or below, negating the bullish scenario and continuing the downward trend.
