Despite Major Bullish News, Price Stalls as XRP’s $1.40 Support Level Faces Breakdown?

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Despite a major positive development in which a subsidiary of French banking giant Societe Generale announced the launch of a euro-pegged stablecoin on the XRP Ledger, the price continues to decline amid broader market risk aversion and heightened geopolitical tensions.

According to investment outlet FXStreet on February 19 (local time), XRP’s outlook remains bearish as it faces downward pressure toward the psychological support level of $1.40. This week’s failed attempt to break above $1.50 comes as overall market risk aversion persists following the release of hawkish Federal Open Market Committee (FOMC) minutes and rising geopolitical tensions between the United States and Iran. The dampened investor sentiment is further reflected in $2.2 million in outflows from spot XRP ETFs.

Amid this bear market, SG-FORGE, the regulated digital asset subsidiary of Societe Generale, announced it will integrate its euro-denominated stablecoin, EUR CoinVertible (EURCV), onto the XRP Ledger (XRPL). This marks its third blockchain integration following Ethereum (ETH) and Solana (SOL). SG-FORGE cited XRPL’s scalability, low transaction costs, security, and decentralization as key drivers behind the adoption.

Despite the positive news, XRP is trading near $1.41 and continues to trend downward. The token remains below its 50-day exponential moving average (EMA) at $1.70, the 100-day EMA at $1.91, and the 200-day EMA at $2.12. In addition, a descending trendline extending from its all-time high of $3.66 is limiting rebounds, reinforcing the broader bearish bias. If the $1.40 support level breaks, the decline could extend to the October 10 low of $1.25.

Technical indicators also support the weak momentum. On the daily chart, the Relative Strength Index (RSI) stands at 38, below the midpoint, indicating the potential for further decline toward oversold territory. Such a move could reduce investment appeal and trigger intensified selling pressure.

However, the Moving Average Convergence Divergence (MACD) line remains above the signal line, and the histogram bars are narrowing above the zero line, suggesting that bullish momentum, though faint, still lingers. Ultimately, holding the $1.40 support level will be crucial for resuming an upward trend toward Sunday’s high of $1.67.

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