XRP Price Prediction: Can the $2.83 support hold? Institutional DeFi becomes a lifeline.

Ripple (XRP) has recently been caught in turbulence, barely holding above the key support level of $2.83 on September 24, with market sentiment being cautious. As retail investor interest sharply declines, the open interest in futures contracts has shrunk by over $1 billion, making it a focal point for investors whether XRP can reverse its downward trend. Meanwhile, Ripple is actively laying out its institutional-grade DeFi ecosystem, which may pave a new path for XRP's long-term development.

####XRP Technicals at a Crossroads, Can Bulls Regain Their Strength?

(Source: Trading View)

The trading price of Ripple remains at the level of 2.83 USD, after sharply dropping to a low of 2.69 USD the previous day, triggering a large-scale liquidation wave. Currently, XRP is at a critical point in technical analysis, and three potential trends may occur in the future:

· Consolidating around $2.83, digesting selling pressure.

· Break through resistance and rebound to the psychological level of 3.00 USD

· Break support, continuing the downward trend to the round number of 2.50 USD

In terms of technical indicators, XRP is currently hovering above the 100-day Exponential Moving Average (EMA), and the Relative Strength Index (RSI) has rebounded from the oversold zone to 42, indicating that selling pressure has eased. However, the Moving Average Convergence Divergence (MACD) indicator has been continuously showing sell signals since Monday, suggesting that downside risks still exist.

If the bulls can hold above the 100-day moving average and break through the 50-day moving average (currently at $2.94), they are expected to challenge the $3.00 threshold. Conversely, if they lose the 100-day moving average, it may further dip to $2.70, or even test the 200-day moving average at $2.59.

####Retail investor interest has sharply declined, and the futures market reveals pessimistic sentiment

Market data shows that retail investor interest in XRP has significantly cooled in the past few days. Open Interest (OI) in futures contracts has dropped sharply from $8.79 billion last Friday to $7.64 billion, a decrease of more than 13%.

This indicator's decline reflects traders' lack of confidence in XRP's short-term prospects, with many investors choosing to Close Position due to concerns over a continued price drop. Market sentiment has turned cautious, waiting for clearer directional signals.

####Ripple Strategic Transformation: Institutional Decentralized Finance and Lending Protocols Become Development Focus

Facing market challenges, Ripple has recently updated its product roadmap, shifting its focus towards institutional-grade Decentralized Finance (DeFi), real-world asset tokenization (RWA), and native lending protocols.

According to the latest news released by Ripple on Monday, the XRP Ledger (XRPL) has become one of the top ten public chains in the RWA field, with a monthly stablecoin trading volume exceeding 1 billion dollars. Meanwhile, the technical upgrades of XRPL ensure comprehensive support for stablecoin payments and collateral management.

Ripple emphasizes that for institutions, "regulatory compliance is not optional, but the gateway to mainstream adoption." To this end, XRPL has introduced a Decentralized Identifier (DID) feature that allows institutions to verify identities without relying on centralized intermediaries, while also meeting the "Know Your Customer" (KYC) compliance requirements.

####Credit On-Chain: Ripple's Lending Ambition

Ripple plans to launch a native lending protocol called "Credit On-Chain" in the fourth quarter, which will be a core component of its institutional DeFi strategy. The protocol will introduce a pooled lending model and will be supported by underwriting credit at the ledger level.

The uniqueness of Credit On-Chain lies in its support for short-term unsecured loans, with preset installment repayment plans. Ripple stated: "The lending protocol will pool liquidity from small investors around the world into institutional-sized loans while maintaining compliance. Borrowers can obtain more efficient and lower-cost financing, while lenders can earn returns from previously idle assets."

This product is specifically designed for institutions that adopt mature risk control models, with underwriting and risk management still conducted off-chain, ensuring a balance between security and compliance.

Ripple's strategic transformation reflects the major trend of the cryptocurrency industry moving towards institutionalization and compliance, and provides a new support point for the long-term value of XRP.