XRP News Today: XRP Drops 31% Since January Peak Amid Institutional Outflows

XRP, the cryptocurrency associated with Ripple, has had a complex year, with both bullish and bearish factors influencing its price. Despite the presence of several positive catalysts, such as the potential for ETFs, futures, and regulatory clarity, the price of XRP has declined by 31% since its January peak of $3.40, trading around $2.31 as of May 27.

Technically, XRP shows signs of a potential breakout. The coin has recently completed a cup and handle pattern, suggesting a possible target of $3.66. Additionally, a bullish pennant formation could push XRP past its year-to-date high of $3.40, potentially reaching $5 or even $10. This optimism is not unfounded, as XRP rallied 500% in November under similar conditions, demonstrating the potential for significant gains.

However, the bullish outlook is tempered by waning institutional interest. XRP investment products saw $37.2 million in outflows, ending an 80-week inflow streak. In contrast, Bitcoin experienced $2.9 billion in inflows during the same period. This shift indicates that institutional investors are rotating their funds elsewhere, at least temporarily. Furthermore, open interest in XRP futures has dropped nearly 10% in two weeks, suggesting a lack of conviction among traders and increased vulnerability to sell-offs.

On the short-term chart, XRP is stuck in a descending triangle, a bearish pattern that often precedes breakdowns. A sustained move below the 200-day simple moving average (SMA) at $2.31 could trigger a decline to $1.96 or even lower, potentially reaching $1.61. This level aligns with broader support from previous cycles, indicating a significant support zone.

Despite these challenges, several catalysts could reverse XRP's fortunes. Rate cuts from the Federal Reserve, an unexpected approval of an XRP ETF, or BlackRock entering the Ripple ETF race could instantly reignite demand. Additionally, growing whale accumulation, the expansion of Ripple's RippleNet ecosystem, and the recent acquisition of HiddenRoad present upside potential. However, for these catalysts to have an impact, XRP must first hold key support levels. Failure to do so could result in another selloff, burying the potential for significant gains.