What's Behind XRP's 20% Plunge: Can a $500 Million Fundraising Turn the Tide?

Markets
Updated: 2025-11-07 09:25

Despite Ripple’s announcement of a $500 million strategic investment led by Fortress Investment Group and Citadel Securities—pushing its valuation to $40 billion—XRP’s price has continued to decline unexpectedly.

On November 7, XRP price dropped 4.14% to $2.223, falling below all major moving averages and signaling a persistent bearish trend.

01 Price Performance: Technical Indicators Under Pressure

XRP’s current market performance is causing concern among many investors. Multiple technical indicators show that this digital asset is facing significant selling pressure.

XRP is now trading below all key moving averages, including the MA-20 ($2.4506), MA-50 ($2.6492), and MA-200 ($2.6249), indicating downward pressure across short-, medium-, and long-term timeframes.

Dynamic resistance is near the Ichimoku Kijun line, around $2.3820, confirming the prevailing bearish market structure, with no crossover signals present.

It’s not just price action—momentum indicators are also broadly negative. Both MACD and ADX suggest further downside potential.

Although the RSI (36.96), Stoch RSI (17.14), and CCI (-123.07) all indicate that XRP is oversold, buying interest remains weak.

This situation points to a slight divergence between oversold oscillators and bearish momentum signals, but the intraday downtrend remains confirmed.

02 Massive Funding: Why Isn’t the Market Responding?

While XRP’s price remains weak, Ripple has delivered some exciting news. Ripple successfully closed a $500 million strategic funding round, led by Fortress Investment Group and Citadel Securities.

This substantial investment has pushed Ripple’s valuation to $40 billion, marking strong institutional confidence in the company and its technology.

Ordinarily, such a large-scale funding event would drive the asset’s price higher—but XRP’s market reaction has been quite the opposite.

This disconnect between price and fundamentals has sparked widespread discussion among market analysts.

Traders Union analyst Anton Kharitonov noted: "Despite Ripple’s strong institutional growth and legal clarity, XRP’s price continues to face sustained selling pressure."

This phenomenon suggests that, in the current environment, macro market factors may outweigh positive company-specific news in influencing asset prices.

03 Strategic Expansion: Ripple’s Ambitions Go Beyond Funding

Beyond its major funding round, Ripple is demonstrating its commitment to expanding market influence through a series of strategic moves.

The company acquired Hidden Road for $1.25 billion—a firm that handles over $3 trillion in annual transaction volume and serves more than 300 institutional clients.

This deal is among the largest in the digital asset sector, and upon completion, Hidden Road was rebranded as Ripple Prime.

Ripple is also actively pursuing new partnerships with major institutions such as Mastercard, WebBank, and Gemini, aiming to drive adoption of the XRP Ledger.

Ripple’s RLUSD stablecoin has made significant progress as well, with its market cap surpassing the $1 billion mark.

According to CoinGecko, RLUSD currently ranks 105th among cryptocurrencies, with a circulating supply of approximately 1.02 billion tokens.

The partnership with Mastercard is particularly noteworthy, marking the first time a U.S.-regulated bank has tested real credit card transactions on a public blockchain using Ripple’s RLUSD stablecoin.

04 Market Dynamics: Shrinking Supply and Institutional Interest

On-chain data reveals some positive signals for the XRP market, despite weak price performance.

Since September, over 1.4 billion XRP have been withdrawn from exchanges—the fastest accumulation rate since 2022.

Meanwhile, network activity has surged, with over 21,000 new wallets created within 48 hours—a record high since January.

These figures suggest that, despite short-term price pressure, long-term investors may be taking advantage of lower prices to accumulate XRP.

Institutional interest is also on the rise. At the Ripple Swell 2025 conference, Maxwell Stein from BlackRock’s digital asset team stated that global financial markets are now ready for large-scale blockchain adoption.

He revealed that infrastructure being built by companies like Ripple could soon facilitate trillions of dollars in on-chain flows.

05 Exchange Trends: Gate’s XRP Reserve Changes

Against the backdrop of overall market pressure, changes in XRP reserves on exchanges have caught the community’s attention.

Crypto investor Stern Drew noted in a social media analysis that Gate reduced its XRP holdings from 780 million to 199 million in just a few weeks—a drop of 69%.

This shift moved Gate from the fifth-largest XRP holder to the lower end of the top ten.

Drew’s analysis shows that Gate’s total sales amounted to about 581 million XRP, valued at nearly $300 million at prevailing market rates.

He further claimed that 40% of these outflows were conducted through OTC desks linked to New York institutions, with transaction times closely matching each significant XRP price decline.

Notably, 72% of the selling activity occurred during low-liquidity hours (2:00 to 5:00 UTC).

While these claims are based on one investor’s analysis and have not been independently verified, they have sparked community discussion about how exchange behavior may impact prices.

06 Outlook: Short-Term Bearishness, Long-Term Potential

Analysts are divided on XRP’s future, but most remain cautious in the short term.

The expected price range for the next five trading days is $0.6735 to $2.1859, with a low probability of an upside move (less than 20%), making further declines more likely.

The baseline scenario is sideways trading between $2.1859 and $2.3820.

For a bullish outcome, XRP would need to break above the Ichimoku resistance and target the 20-day moving average, but this currently seems unlikely.

A bearish scenario would see the price fall below $2.1859, exposing further downside risk, pointing to recent weekly lows and signaling continued selling.

Nonetheless, medium- and long-term forecasts remain positive: a 3-month projection calls for a 60.16% increase to $3.5614, a 6-month outlook sees a 51.43% rise to $3.3673, and a 1-year forecast anticipates an 87.84% jump to $4.1771.

Additionally, speculation about a BlackRock XRP ETF is growing, a development that could reshape institutional allocations to this asset.

Analysts note that such a product would offer regulatory recognition and attract billions in inflows, potentially driving long-term value growth for XRP.

Future Outlook

Market analysts point out that over the next five days, XRP’s expected price range is $0.6735 to $2.1859, with less than a 20% chance of an upward move. If the price can hold above the $2.30 support level, analysts expect a possible move toward the $2.60 to $3.00 range.

Despite short-term price weakness, on-chain data shows that over 1.4 billion XRP have been withdrawn from exchanges since September—the fastest accumulation pace since 2022. This accumulation pattern suggests that savvy investors may be positioning themselves during price weakness, preparing for the next upward cycle.

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