XRP Faces Uncertain Future as Price Dithers Amidst Geopolitical Tensions

XRP, a volatile altcoin, is currently grappling with price fluctuations, especially around May 21st. Analyst Levi points out this date could be a pivotal moment for XRP’s trajectory as it navigates both technical signals and the broader landscape of global uncertainty. Prices have hovered between $2.31 and $2.15, with a potential break above $2.61 paving the way for further gains. Conversely, falling below $1.79 could trigger a reversal in recent positive trends. The “buy the dip” strategy has gained traction as the price fell to the $2 range and rebounded quickly. On-chain data reveals that balances per wallet have increased, suggesting long-term investors are accumulating rather than selling. Meanwhile, new liquidity pool additions signal limited sell pressure. 6 This makes short-term traders navigate a dynamic landscape with both risk and opportunity in the $2.31 – $2.15 range, as this zone has witnessed significant price jumps over the past year, exceeding 15% on each occasion. Technologically, the 100-day EMA remains below the current price, supporting a bullish outlook; however, increasing volatility calls for caution in leveraged positions. Options market interest in contracts expiring on May 21st suggests anticipation of positive outcomes. However, ultimately, this depends on the volume in the spot market. Geopolitical tensions between the US and China have significant implications for XRP’s price. Concerns regarding export controls by Washington have led to retaliatory measures from Beijing, which has resulted in a decrease in risk appetite. As traditional investors tend to move away from volatile assets during such periods, we see XRP experiencing an initial impact on its price, followed by other major altcoins like Bitcoin (BTC). XRP’s payment infrastructure vision, however, could offer some protection against geopolitical shocks. Interbank transfer pilots are strengthening the long-term use case of the altcoin, attracting more buyers even amid market downturns. Analysts predict a breakout above $2.61 could trigger strong buying, while failure to break this level might lead the price to hover around $2.15 and settle depending on external news flows.