Will XRP reach 2.3 dollars after the shock of replacing 22 million dollars?

On Thursday, the Ripple market (XRP) suffered a loss of 22 million dollars after new tensions in the Middle East sparked liquidation events across the market.

Specifically, leveraged Long positions have lost 20 million dollars compared to 1.7 million dollars in Short positions. However, this level of loss is relatively low compared to the overall "bloodbath" of the market, reaching 1.16 billion dollars.

Source: CoinGlassIt is noteworthy that the market is liquidating after an important positive piece of information: the launch of the first XRP treasury company.

At the same time, the trading volume of options surged by 225% to nearly 4 billion dollars, highlighting that large investors are ramping up their risk hedging. So, what will happen next for XRP?

Assessment of XRP's Prospects

On Thursday, the XRP Ledger officially integrated Circle's USDC stablecoin, marking an important step towards realizing the vision of cross-border payments, while reinforcing XRP's role as a utility asset within the blockchain ecosystem.

At the same time, Trident Digital Tech Holdings Ltd. – a company listed on Nasdaq announced the establishment of a corporate treasury fund using XRP. Notably, the company revealed plans to spend up to $500 million to accumulate XRP, placing this altcoin alongside major assets like BTC, ETH, SOL, and HYPE in the portfolios of public companies.

These positive developments may have contributed to XRP limiting its correction during the day. While ETH and SOL dropped by about 8% respectively, XRP only lost 4% – indicating that the support from institutional confidence is becoming increasingly evident.

However, the 25 Delta Risk Reversals (25RR), an important measure of market sentiment looking forward, has turned negative for the end of June options expiry. This means that the options market is receiving more demand for Put orders ( betting on a decline, hedging risks ) than for Call orders ( betting on a rise ).

Source: AmberdataIn other words, there seems to be significantly more risk hedging against a bearish scenario – a sign of weak sentiment in the short term.

The aforementioned price positioning is not surprising as the market remains uncertain about how tensions in the Middle East will unfold. Another potential event that could cause volatility is the upcoming FOMC meeting in the US next week.

On the price chart, this altcoin is consolidating between the (SMA) 200-day simple moving average and the $2.3 level in June. If the bulls lose the 200-day SMA, the bears could pull XRP down to $1.9 or $1.8, especially if the situation in the Middle East worsens.

On a positive note, the target of $2.3 will be the immediate resistance level if market sentiment improves.

XRP Price Chart | Source: TradingViewMinh Anh