The token, which had recently shown signs of recovery, slipped nearly 5% to trade around $2.34 on May 24, underperforming top crypto assets like Bitcoin and Ethereum.

Ripple’s RLUSD Faces Wall Street Challenge

One of the key factors weighing on XRP price is the growing competition in the stablecoin arena. Ripple recently launched RLUSD, a U.S. dollar-backed stablecoin, as part of its ongoing expansion of the Ripple ecosystem. Built on both the XRP Ledger and Ethereum, RLUSD is designed to serve institutional clients using RippleNet and its On-Demand Liquidity (ODL) solutions.

CME’s Tim McColt acknowledged XRP’s strong utility, signaling growing institutional recognition beyond mere market hype. Source: Amy via X

As of May 24, RLUSD reached a market cap of $310 million, showing promising early traction. However, a new development has cast a shadow over its momentum. JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup are reportedly exploring a jointly issued Wall Street-native stablecoin. The plan, still in the early stages, aims to enhance payment efficiency and cross-border transaction capabilities using established banking infrastructure.

This announcement triggered fresh concerns about Ripple’s competitive positioning. “The threat of a consortium-backed stablecoin could eat into RLUSD’s institutional adoption,” noted one analyst, pointing out the clout and capital legacy banks can bring to the table.

Whale Liquidations Rattle the XRP Market

Beyond macro developments, XRP has also been hit hard by unusual trading activity. On May 23, long liquidations in XRP surged to nearly $10 million, compared to just $431,000 in shorts—a staggering 2,306% imbalance. This type of skewed liquidation ratio is rare, even in crypto’s volatile landscape, and suggests that many traders were overly optimistic before the market reversed suddenly.

A whale has acquired nearly 250 million XRP, valued at over $500 million, highlighting renewed large-scale investor confidence. Source: Stellar Expert via X

The impact of this washout was visible in the derivatives market. According to Coinglass, XRP futures open interest dropped to $4.89 billion, down nearly 1.5% in 24 hours. Meanwhile, options activity rose sharply, with open interest climbing 48% and options volume doubling—signs that traders are bracing for more volatility.

A total of $14.88 million in long positions were liquidated within a single day, including $5 million in just 12 hours. This reinforces the view that aggressive leveraged bets, spurred by early-week optimism, were swiftly undone by the stablecoin announcement and Ripple market uncertainty.

XRP Struggles Despite Bitcoin Momentum

While XRP slipped, Bitcoin continued its ascent, touching a new all-time high of $111,807 on May 24, driven by nearly $1 billion in ETF inflows and institutional buying triggered by U.S. tariff news. This influx of capital into Bitcoin appears to have drained liquidity and attention from altcoins, including XRP.

XRP was trading at around $2.34, down 4.44% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Historically, when Bitcoin dominates the market, altcoins struggle to keep pace. This pattern seems to be repeating. Ripple XRP news shows that while the token broke out of a descending channel earlier this month, it has failed to maintain momentum or generate significant follow-through.

At press time, XRP is trading between $2.30 and $2.35. Technical indicators offer mixed signals. The Relative Strength Index (RSI) has dipped below the neutral 50 mark, while the price now sits beneath both the 9-day and 21-day moving averages, levels it had consistently held since early May.

XRP Price Prediction: Bearish Bias Persists

With market sentiment leaning cautious, analysts are eyeing $2.08–$2.10 as the next major support zone. If XRP fails to reclaim $2.37 in the short term, a deeper correction could unfold. However, if Bitcoin holds above $108,000 and broader sentiment improves, a rebound to $2.45 remains plausible.

XRP faces key resistance at $2.60–$2.70, with a pullback likely if no breakout occurs amid ETF uncertainty. Source: SQuiRRel88 on TradingView

“XRP’s next big test will come if derivatives interest rebounds and trading volume recovers above $7 billion,” said one market strategist. For now, however, the outlook is subdued.

Regulatory Cloud Still Lingers

Adding to the pressure is ongoing uncertainty surrounding the XRP lawsuit and Ripple’s long-standing battle with the U.S. Securities and Exchange Commission. While Ripple scored a partial legal victory in 2023, unresolved elements of the XRP SEC lawsuits still hang over the token. Updates on the Ripple lawsuit are anticipated later this quarter, which could inject fresh volatility into Ripple crypto markets.

Brad Garlinghouse and the Ripple team have positioned XRP as a bridge currency for cross-border payments, supported by the Ripple ledger’s efficiency and speed. However, competition from traditional banks and persistent regulatory ambiguity continue to challenge Ripple’s ambitions.

Final Thoughts

Ripple XRP news this week paints a complex picture: strong infrastructure developments overshadowed by institutional threats and fragile technicals. Unless bullish momentum returns or regulatory clarity emerges, XRP may continue to trade sideways or lower in the near term. Still, with Bitcoin leading the market and macro conditions favoring crypto, the window remains open for a possible recovery—if XRP can survive the turbulence.

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Filed under: Bitcoin - @ May 24, 2025 5:00 pm