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XRP price continued its strong downward trend on Wednesday, falling below the important support level at $1.5 despite ongoing bullish catalysts. Ripple token was trading at $1.3770, down sharply from its all-time high of $3.6640. This retreat happened even after Ripple Labs announced a major deal with Aviva.
Ripple Labs Inks Major Deal With Aviva Investors
XRP price continued falling after Ripple Labs announced a major partnership with Aviva, a top British company with over $345 billion in assets under management (AUM).
This deal will see Aviva launch new tokenized assets on the XRP Ledger, creating more utility for the XRP token. It is a significant deal as it was the first one that Ripple has inked with a major European asset management company.
Aviva will benefit from XRP Ledger’s low fees and faster speeds. It will also benefit from other top services Ripple offers, including Ripple USD (RLUSD), a stablecoin.
The new partnership comes at a time when the XRP Ledger network is gaining market share in the Real-World Asset (RWA) tokenization industry. Data shows that the network has over $303 million in distributed asset value (DAV) and over $1.45 billion in Represented Asset Value (RAV), a figure that has soared by 278% in the last 30 days.
A good example of top companies that are using Societe Generale, Circle, VERT Capital, and Guggenheim Partners. Societe Generale is a top European bank with over €1.5 trillion and $350 billion in assets under management (AUM).
Meanwhile, Ripple Labs’ RLUSD stablecoin continues to grow. Data compiled by Artemis shows that the coin has gained over $1.5 billion in assets, with over $424 million being in the XRP Ledger network. Its stablecoin holders have jumped by 3% in the last 30 days to over 35k.
This growth will lead to greater use of the XRP token and increased token burn. A token burn is the removal of a coin from circulation.
Ripple Labs Has Unveiled More Features to Boost the XRP Utility
Ripple Labs has unveiled several network features aimed at boosting XRP’s utility. For example, the developers recently launched the XRPL Lending Protocol, a move that will boost institutional lending on the XRPL network by enabling single-asset vaults. The solution introduced unified fundraising and programmatic loan logic, along with a compliant hybrid model that includes KYC and AML features.
Meanwhile, Ripple Labs announced the upcoming launch of additional institutional DeFi features, including a Permissioned DEX. All transactions in the network will be handled using the XRP token, with the fees being burned.
Third-party data shows robust demand for the XRP token among retail and institutional investors. Data compiled by SoSoValue shows that the spot XRP ETFs added over $3.2 million in assets on Tuesday. Inflows have jumped by nearly $50 million, beating Ethereum and Bitcoin.
XRP Price Prediction: Technical Analysis
The weekly timeframe chart shows that the XRP price has been in a strong downward trend in the past few months. It has crashed from a high of $3.6640 in July to the current $1.3727.
It has moved below the 50-week and 200-week Exponential Moving Averages (EMA), while the MACD and the Relative Strength Index (RSI) have moved downwards.
The coin has moved below the 61.8% Fibonacci Retracement level at $1.5800. Also, the Average Directional Index (ADX) has jumped, a sign that the downtrend is gaining momentum.
Therefore, the most likely scenario is that the Ripple price continues to fall, potentially to the psychological level of $1. A move below that level will point to more downside.
However, a move above the key resistance level at $1.9768, the 50% retracement level, will invalidate the bearish outlook and point to more gains in the coming weeks.
