XRP slipped 6.88% over the past 7 days, trading at $2.78, despite a wave of positive developments bolstering sentiment around the crypto.
The decline follows what lawyer and crypto advocate Bill Morgan described as XRP’s close correlation with Bitcoin, noting that its price action continues to “play follow the leader.”
Despite the pullback, several key drivers indicate growing institutional interest.
On Wednesday, Ripple announced a partnership with DBS and Franklin Templeton to offer accredited investors tokenised money market funds and lending products on the XRP Ledger, supported by Ripple’s dollar-pegged stablecoin, RLUSD.
Morgan remarked sarcastically that with so much positive news, XRP’s ability to hold above $3.00 was notable in itself.
Institutional catalysts test XRP’s resilience
Momentum had already been building earlier this week. The REX-Osprey XRP ETF went live, offering U.S. investors direct spot exposure to the token. Meanwhile, CME Group confirmed that it would list XRP and Solana futures options in October.
The combination of new derivatives products, ETF approval, and a Federal Reserve rate cut initially pushed XRP higher by more than 4% before it reversed course alongside the broader market.
Analysts caution that legal and regulatory outcomes are central to XRP’s trajectory. The recently resolved SEC v. Ripple lawsuit is expected to ease one of the biggest overhangs on the token.
Meanwhile, further ETF decisions from the SEC are due in October. The outcomes could either accelerate institutional inflows or stall momentum.
At press time, XRP’s market cap stood at $166 billion, with daily trading volume reaching $4 billion, according to CoinMarketCap. In the long term, technical upgrades to the XRP Ledger, including new batch transactions and escrow features, aim to expand its DeFi utility and facilitate institutional adoption.
Combined with Ripple’s banking partnerships and potential CBDC integrations, the outlook appears bullish. For now, however, XRP’s path may be tied to Bitcoin’s market direction.
Source: https://zycrypto.com/why-xrp-price-has-dropped-despite-massive-success-this-week/
