Why Is the Price of XRP Dropping Today? JP Morgan Partners with Three US Banks for “Wall Street Stablecoin,” Shaking Ripple’s $300M RLUSD Market
The price of Ripple (XRP), which underperformed its top five competitors, fell 5.2% in the last day to trade at $2.31 on Saturday. Despite Bitcoin (BTC) reaching a new all-time high of $111,807, derivatives data indicates that short-term traders are quickly liquidating their positions. What will happen to XRP’s price next?
In reverse, Ripple (XRP) drops to $2.31 despite a Positive Bitcoin Outlook
On Friday, Ripple (XRP) lagged behind the larger cryptocurrency rise due to new sector-specific risks and macro volatility.
Donald Trump’s threats of a 50% tariff on the EU on Friday increased institutional demand for Bitcoin, but XRP was unable to keep up with the surge.
XRP opened trading at $2.31 on Saturday, down 5.1% from Friday’s $2.44, according to CoinGecko data.
Bitcoin, on the other hand, shot up to a record high of $111,807 thanks to daily ETF inflows of $934 million, the second-highest amount since the start.
XRP was the worst-performing asset among the top five by market capitalization, with losses of 5.2%. Notably, BTC, Ethereum, Solana, and BNB all did better than XRP, with daily period losses at the time of publishing capping at less than 5%.
Why is the price of XRP lower today?
Following JPMorgan’s leadership of a consortium of four legacy banks that floated the notion of a new Wall Street-native digital dollar initiative, investors’ rising concerns about Ripple’s capacity to compete in the global stablecoin market are reflected in Friday’s underperformance of the XRP price.
The biggest U.S. banks, JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are considering launching a joint USD-backed stablecoin, according to a Wall Street Journal article published on Friday.
The strategy, which is still in the conceptual stage, calls for using blockchain infrastructure providers such as The Clearing House and Early Warning Services to speed up payments and lessen cross-border friction.
As a result, established stablecoins introduced by crypto-native companies, such as Tether (USDT), Circle’s USDC, and Ripple’s RLUSD, may lose market share to Wall Street heavyweights.
In March 2025, Ripple introduced RLUSD, a regulated U.S. dollar stablecoin that is available on Ethereum and the XRP Ledger.
The RLUSD serves as the payment and liquidity foundation for RippleNet and its On-Demand Liquidity (ODL) product suite for institutional players, and it is 1:1 backed by U.S. dollar reserves and short-term treasuries.
At the time of publication on May 24, Ripple’s native Stablecoin now commands a circulating capital of $310 million, per Coingecko’s latest RLUSD data.
However, the emergence of a “Wall Street stablecoin” backed by the top four U.S. banks threatens to diminish RLUSD’s rising market dominance particularly among institutional players.
As open interest falls below $5 billion, what will happen to the price of XRP next?
The fact that open interest in XRP futures markets dropped 1.47% to $4.89 billion, indicating that traders are actively deleveraging from the Ripple-backed coin, further highlights the pessimistic outlook.The following picture of CoinGlass’ derivatives trading demonstrates how XRP Open Interest (OI), or the entire value of active derivative contracts, has dropped 1.5% over the past day, losing more than $50 million. Trading volume, meanwhile, increased by 51.84% to $6.97 billion, indicating that the price decline was caused by intense sell pressure over the previous day.
Furthermore, the volume of XRP options doubled to $16,570, and the open interest in XRP options increased by 47.99% to $1.69 million. As traders prepare for volatility in the wake of the Wall Street stablecoin announcement, this suggests an increase in hedging activity. new tarrif on the EU due to come into effect on June 1, 2025.
With $14.88 million XRP Longs erased and $1.02 million Shorts liquidated out of the $15.89 million total positions closed, 24-hour liquidations data validates downward momentum.
The 12-hour window alone saw $5.02 million in long positions liquidated. This implies that long-traders who were taken aback by the JPMorgan announcement were primarily responsible for the recent sell push.
Spot price action may test important support levels at $2.20 and $2.10 if XRP’s open interest keeps falling toward $4.5 billion.
Is XRP Going to Get Better?
On the plus side, the present consolidation of Bitcoin above $108,000 offers a supportive macroenvironment. Bitcoin’s consistent consolidation over $108,000 may provide a technical cushion for XRP bulls shortly, while the price of XRP stabilized above $2.30 during the weekend.
Technically, assuming XRP holds the $2.20 support and futures open interest recovers to the $5 billion mark, a recovery toward $2.45 is still feasible.
Today’s XRP Price Prediction: Bears Eyes Reversal of $2.08 Following a Break in Important Moving Averages
Although Ripple (XRP) was down 5% from Friday at $2.3066 at the time of writing, the technical view is cautiously bearish because XRP has fallen below the 21-day and 9-day moving averages ($2.3556 and $2.3697, respectively).
Rising downside risks are highlighted by this indication. Given that the price is currently closing below the short-term MAs for the first time since early May, the inability to maintain above these important trend lines points to waning short-term momentum.
At 48.46, the Relative Strength Index (RSI) is below its neutral 50 line and deviating from its moving average, which is currently 56.86. This suggests that negative momentum is progressively increasing.
This also suggests that unless bulls regain control over $2.37, sellers may keep applying pressure. If the present downturn continues, the $2.08 level can become the next crucial support.
Although the price of bitcoin is still expected to rise today, there isn’t much of a bullish attitude in the altcoin markets as a whole. This adds to XRP’s hesitancy, as previous breakthrough attempts have been undermined by poor follow-through above $2.40.
For the short-term perspective to turn bullish once more and challenge the $2.60 highs, a clear daily closing above $2.37 would be necessary. On the other hand, if bearish sentiment holds sway over the weekend, the price of ripple may move down near the $2.08–$2.10 range.
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