Here’s Why XRP Price Pumps Are Short-Lived: What Lies Ahead For Ripple’s Coin?

XRP price has continued to stay in the red, consolidating in the $2.10 range over the past few days. Besides, Ripple’s coin has also failed to showcase a strong breakout over the past few months. Although the crypto has recorded massive pumps after Trump’s crypto reserve announcement and Brad Garlinghouse’s comment on a potential conclusion in the Ripple Vs SEC case, the rally was short-lived.

So, here we explore some of the potential reasons that are stalling a potential rally in the crypto’s price.

XRP Price Continues To Stay In Red: Here’s Why

XRP price today was down around 1% and exchanged hands at $2.11, while its one-day volume fell 18% to $3.51 billion. Notably, the crypto has touched a 24-hour high and low of $2.19 and $2.07, indicating a waning risk-bet appetite of the investors. However, XRP Futures Open Interest rose 1%, contrasting the current market trend.

Amid this, the latest report showed that Ripple’s native asset price might face a correction to $1.5 if it fails to hold key support. So, here we explore some of the reasons that are hindering the rally in the asset’s price.

Why is XRP Price Failing To Showcase Strong Breakout?

The recent dip in XRP could be due to Ripple’s transfer of 1 billion coins, which has sparked market speculations. Besides, recent observations by market expert Vincent Van Code shed light on the fleeting nature of XRP surges. According to Van Code, a significant factor contributing to the brief pumps is the activities of large Bitcoin (BTC) whales.

These whales are buying and dumping XRP, triggering an effect that arbitrage and trading bots attempt to balance, particularly in the XRP/USDT market. This pattern suggests that BTC whales, potentially holding substantial amounts of Bitcoin acquired at low costs, may be engaging in XRP swing trading to maintain their dominance.

Meanwhile, Van Code notes that similar patterns have been observed in other pump-and-dump scenarios, ultimately driving the XRP/BTC ratio lower than pre-pump levels. For XRP price action to gain traction, Van Code believes that significantly higher trading volumes or around $40-50 billion daily are necessary.

However, this seems like a Catch-22, as the price would need to surpass $5 to achieve such volumes. The expert suggests that a substantial influx of investment from major XRP institutions or a “flipping of the switch” would be required for a sustained price increase. Until then, XRP pumps may remain short-lived.

What Lies Ahead For Ripple’s Coin?

As the XRP price failed to show any strong moves, analysts are highlighting key levels to watch ahead. For context, renowned expert Ali Martinez has highlighted the importance of the $2 support level, warning that a failure to hold this mark could trigger a retreat to around $1.2.

Meanwhile, market analyst EGRAG CRYPTO has shared a forecast for XRP’s April candle formation, predicting a dynamic month with tests at both ends of the range. According to EGRAG CRYPTO, XRP price will likely revisit the lows around $1.90-$1.79 and test the upper range at $2.80-$3.00, with potential for a 62-70% upside from the lowest point.

In addition, the analyst noted that the market is currently in a “boredom phase” but anticipates a significant blastoff after Ripple’s coin revisits the $2 region one last time. These predictions suggest that XRP’s price may experience significant fluctuations in the coming weeks, with the potential for both downward and upward movements.