The price of XRP has experienced a significant decline, dropping to a low of $2.4400, which marks its lowest level since October 24 and represents a 35% fall from its yearly high. This crash has reduced XRP's market capitalization to over $157 billion, as the token mirrors the broader cryptocurrency market downturn.
The decline is attributed to several factors, including the Federal Reserve's decision to cut interest rates by 0.25% and announce an end to quantitative tightening in December, coupled with Donald Trump's meeting with Xi Jinping at the APEC summit. Despite these events being perceived as positive, investors are selling the news, leading to a market-wide correction.
Technically, XRP is on the verge of forming a death cross pattern on the daily chart, following a bearish breakout from a descending triangle pattern with a lower side at $2.70. Futures open interest for XRP has decreased to $4.26 billion from a weekly high of $4.46 billion, and liquidations have resulted in $20 million in long positions being wiped out.
Despite the downturn, potential bullish catalysts remain, such as the growth of the Ripple USD (RLUSD) stablecoin, whose supply surged 15% to $908 million in the last 30 days, with addresses increasing by 27% and volume exceeding $4 billion. Additionally, the recently launched XRP ETF has accumulated over $113 million in assets, and more ETF approvals are anticipated by year-end, which could drive future demand.
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