XRP’s Path to $3: Ripple’s $5B Circle Bid Rejected as Key Support Holds

Ripple’s ambitious $5 billion bid to acquire Circle, the issuer of USDC stablecoin, has been rejected, with Circle choosing to proceed with its IPO plans instead. This development highlights the fierce competition in the $150 billion stablecoin market, where Ripple aims to expand its footprint beyond cross-border payments. Meanwhile, XRP is trading at $2.21, holding a key support level that could pave the way for a $3 target amid broader market consolidation. Below is a detailed analysis of these developments and their implications for XRP’s future.

Ripple’s $5B Circle Bid Rejected as XRP Holds Key Support for $3 Target

Ripple’s ambitious $5 billion acquisition offer for Circle—issuer of the USDC stablecoin—has been formally rejected, with Circle opting instead to pursue its previously announced IPO plans. The failed bid underscores intensifying competition in the $150 billion stablecoin sector, where Ripple seeks to expand its influence beyond cross-border payments.

XRP trades at $2.21 amid broader crypto market consolidation, with technical indicators suggesting bullish potential. The MACD histogram maintains positive momentum as buyers defend the critical $2.20 support confluence. A sustained hold above this level could validate medium-term targets near $3.00.

XRP Price Dips Amid Rising Volume as Traders Reposition

Ripple’s XRP slipped 1.35% to $2.20 despite a 21.66% surge in trading volume, suggesting strategic profit-taking before the next market move. The token maintains a $128.6 billion market cap after gaining 1.94% weekly.

Virtuals Protocol and Curve DAO Token led Thursday’s gainers while Algorand and Optimism lagged. Market participants appear to be rebalancing portfolios rather than exiting positions, with XRP’s elevated volume signaling continued interest at current levels.

XRP Price Stability Amid Surging Volume Points to Growing Market Interest

XRP demonstrates equilibrium between bullish and bearish forces, trading at $2.207 with a marginal 0.77% decline. Trading volume spiked 21% to $3.33 billion, underscoring sustained investor engagement despite stagnant prices.

The token weathered April’s volatility with resilience, rebounding from a $1.65 dip on April 7 to $2.33 by month-end—a 4.98% monthly gain that breaks its three-year April losing streak. Historical trends now suggest a potential 25% May rally toward $3, though $1.65 remains critical support should bearish momentum resurge.

Ripple Eyes Takeover of Stablecoin Giant Circle

Ripple, the digital payments firm behind XRP, has set its sights on acquiring Circle, the issuer of the $60 billion USDC stablecoin. According to a Bloomberg report, Ripple recently approached Circle with an offer valued between $4 billion and $5 billion, which was rejected. The move underscores Ripple’s ambition to expand its influence in the stablecoin market.

Circle, meanwhile, appears committed to independence. The company filed paperwork for an initial public offering earlier this month, joining other crypto firms seeking to transition from volatile digital asset markets to traditional financial markets.

Ripple’s $5B Circle Bid Rejected – Implications for XRP

Ripple Labs’ ambitious $4B-$5B acquisition offer for Circle, the issuer of USDC stablecoin, was reportedly declined as too low. The failed deal leaves unanswered questions about Ripple’s strategic expansion plans beyond cross-border payments.

XRP shows resilience despite the news, holding above $2.1 support. Market watchers now eye $2.4 as the next psychological resistance level. VanEck estimates Circle’s valuation at $4B-$6B, suggesting Ripple may need to revise its approach.

Circle maintains focus on its upcoming IPO, dismissing the acquisition talks as ’market rumors.’ The firm continues aggressive stablecoin expansion, with USDC challenging Tether’s dominance in the $160B stablecoin market.

Analyst Warns of Potential 30% Drop for XRP Amid Failed Breakout

XRP faces mounting bearish pressure after failing to sustain last week’s rally. The cryptocurrency slid below $2.30 this week, erasing its 8% gain from the previous week and now shows a 7% decline from its weekly peak of $2.36.

Block Bull, a prominent market analyst, warns of a potential 30% correction to $1.55 following XRP’s failure to break the resistance level at the top of a daily chart bull flag pattern. ’This would be annoying as hell,’ the analyst remarked in an April 29 post, while noting the potential downturn may prove temporary.