The XRP price is facing a steep decline today, mirroring the overall weakness seen in both the crypto and stock markets.
Summary
XRP has deepened its weekly losses as the global market downturn continues. The token is close to forming a death cross on the daily chart, a bearish signal that suggests continued downward pressure. Price action also reveals a break-and-retest pattern, reinforcing the current downtrend.
In recent sessions, XRP slipped to $2.44, marking its lowest level since October 24 and a 35% drop from its yearly peak. This fall reduced its total market capitalization to roughly $157 billion.
The sell-off followed the Federal Reserve’s rate cut of 0.25% and its announcement to end quantitative tightening by December. Although such decisions often lift markets, traders appear to be selling after the news, as expectations had already been priced in.
Market reactions also stemmed from the meeting between Donald Trump and Xi Jinping during the APEC summit, which ended on a positive note with mutual concessions. However, since optimism was already factored into prices, many investors took the opportunity to book profits.
Another reason behind the XRP price decline is the drop in futures open interest, which has fallen to $4.26 billion from $4.46 billion earlier in the week—far below the $11 billion peak reached several months ago.
Possible Upside Factors
Despite the recent correction, XRP still shows promising bullish indicators:
- The Ripple USD stablecoin (RLUSD) has seen strong momentum, with supply rising by 15% over the last month to reach $908 million.
- The number of RLUSD wallet addresses increased by 27%, while total trading volume surpassed $4 billion in just 30 days.
- The recently launched XRPR ETF has accumulated more than $113 million in assets, and additional XRP-based ETFs could soon gain regulatory approval—potentially fueling new demand.
Technical Analysis
On the daily timeframe, XRP has been in a steady downtrend, forming a descending triangle pattern with key support near $2.70. After breaking below this level, the token briefly retested it before resuming its fall.
A death cross—where the 50-day moving average moves below the 200-day average—is also approaching, often seen as a strong bearish indicator. If this setup confirms, XRP could decline toward $2.00, implying another 18% potential downside from current prices.
Even so, traders remain cautiously optimistic. Strengthening fundamentals, such as expanding stablecoin adoption and ETF growth, could eventually stabilize prices and trigger a recovery once market confidence returns.
