- XRP failed to establish $0.57 as a support level and has lost nearly 7% in the past week, currently trading around $0.54.
- The broader crypto market’s downward trend has affected XRP throughout 2023.
- Ripple Labs is focusing on expanding real-world use cases and partnerships, potentially benefiting XRP by creating demand.
XRP failed in its attempt to turn the $0.57 level into support over the weekend as bears continued to apply intense downside pressure. The token has shed nearly 7% over the past week and currently trades around $0.54 following another 2% daily slump.
The broader crypto retreat has engulfed XRP for most of 2023 so far, preventing any upside breakouts despite its relative resilience around the $0.50 support area. Now traders are looking for key catalysts to flip bearish momentum as the path of least resistance remains lower.
Ripple Labs’ efforts around expanding real-world use cases and partners could provide meaningful tailwinds for XRP. As the company intensifies its focus on cross-border settlement solutions utilizing the digital asset, demand drivers could start falling into place.
XRP Ledger looks to expand functionality
Additionally, ongoing development of the XRP Ledger by community participants looks to expand functionality and introduce innovative new use cases for the network. The emergence of DeFi protocols like Evernode built on XRPL infrastructure could broaden its utility over time.
Accumulation activity from whales also signals the lasting viability of the often-controversial token. Consistent big-money purchases point to lingering long-term conviction during the ongoing bear trends.
But in the near term, troubling technical factors and unresponsive buyers have analysts cautious about upside potential. For XRP to decisively reverse its fortunes, a daily close above short-term resistance at $0.60 is seen as the first requirement to put bears on notice.
From there, XRP would need to reclaim the $0.65 level. Until meaningful flips of former support, sellers remain fully in control of price action.
