XRP Falls Below $1.20 Despite Ripple’s Africa Stablecoin Expansion

• XRP fell below $1.20 after facing rejection near $1.28 earlier this week.
• Ripple invested in Flutterwave’s Series E round to support RLUSD payments across Africa.
• XRP remains below its 50-day, 100-day, and 200-day moving averages.

XRP moved below $1.20 on Wednesday as the wider cryptocurrency market lost part of its early-week recovery. The token traded near $1.19 after buyers failed to sustain a rebound from the $1.10 region.

The pullback came despite Ripple announcing a strategic investment in African payments company Flutterwave. The agreement will support the integration of Ripple USD into Flutterwave’s infrastructure, expanding access to stablecoin-based settlement across the continent.

Ripple Expands RLUSD Payments in Africa

Ripple participated in Flutterwave’s Series E funding round as the companies work to introduce RLUSD into the payment provider’s network.

Flutterwave operates a payment infrastructure for businesses across several African markets. The partnership aims to connect its regional reach with Ripple’s institutional stablecoin and the XRP Ledger.

Reece Merrick, Ripple’s managing director for the Middle East and Africa, said the investment would place RLUSD within Flutterwave’s infrastructure. He added that the payments company would help generate stablecoin flows through the XRP Ledger.

RLUSD is issued through Standard Custody & Trust Company and is backed by U.S. dollar-denominated reserves. The stablecoin had a market capitalization of about $1.6 billion, placing it among the ten largest dollar-pegged digital assets.

Notably, the announcement strengthens Ripple’s payments business, but it did not provide immediate support for XRP’s market price. RLUSD and XRP serve different functions within the company’s wider ecosystem, even when both operate through the same blockchain infrastructure.

Related: XRP Price Prediction: XRP Consolidates as Ripple Boosts RLUSD in Africa — Breakout in Sight

XRP Stays Below Major Moving Averages

Additionally, the daily chart shows XRP trading well beneath its main exponential moving averages. The 50-day EMA stands near $1.28, while the 100-day EMA sits around $1.37. The 200-day EMA remains higher at approximately $1.58.

These three indicators create a broad resistance zone above the current price. XRP must first reclaim $1.28 before the chart can show a stronger recovery from the latest decline.

                                                          Source: TradingView

Price previously broke below the $1.30 area and dropped toward support near $1.10. Buyers responded from that level, lifting XRP back above $1.20 briefly before another rejection developed.

Meanwhile, the parabolic SAR has shifted below the price near $1.07, showing a modest improvement in short-term momentum. A daily close below that level would weaken the rebound and return attention to the recent low.

Related: Coinbase Plans 1:1 Backed Tokenized Stocks With Real On-chain Ownership

Momentum Improves as Trend Remains Weak

On the other hand, the Moving Average Convergence Divergence indicator has produced an early bullish crossover. Its histogram turned positive, while the MACD line moved above the signal line.

Even so, both lines remain below zero, meaning the improvement has not yet reversed the wider bearish trend.

The Money Flow Index rose to 43.51 after recovering from near-oversold territory. That reading shows capital flows have improved, though buyers have not gained full control.

XRP now faces initial resistance near $1.20, followed by the 50-day EMA at $1.28. Support remains concentrated around $1.10 and $1.07 as traders monitor the Federal Reserve’s policy announcement and broader crypto market direction.