The XRP price has faced a significant downturn this month, entering a bear market after a sharp 30% decline from its highest point in January. The cryptocurrency, which has been a major draw for investors, recently dropped to $2.4335 due to a drop in trading volume and futures open interest.
XRP Price Drops Amid Dwindling Demand
Recent data shows that the price of XRP has been under pressure due to low investor interest. According to Coinglass, futures open interest fell to $3.45 billion on Wednesday, down significantly from $7.45 billion in January. In addition, daily trading volume has dropped to $4 billion from the $32 billion recorded a week ago. These figures suggest that the excitement around XRP’s price has cooled off in recent weeks.
Possible Catalysts for XRP Price Surge
Despite the current bearish trend, several factors could push the price of XRP higher in the coming months. One of the most significant developments is the growing possibility of a spot Ripple ETF. Polymarket data shows that the probability of acceptance has risen to over 80%. If this comes true, JPMorgan estimates that such ETFs could attract investments of over $8 billion in the first year. By comparison, the spot Ethereum ETF has attracted only $3 billion, indicating the potential impact on the XRP price.
Strategic partnerships strengthen Ripple’s position
Ripple Labs continues to expand its influence in the financial sector through strategic collaborations. A notable partnership has been struck with Portuguese currency exchange provider Unicambio that will use Ripple’s network for cross-border transactions. Additionally, Ripple has secured money transmitter licenses in New York and Texas, making it possible to operate in two major financial centers in the United States.
Further boosting confidence in the XRP price, Ripple USD has seen significant growth, with daily trading volumes exceeding $200 million. This has surpassed many other stablecoins, solidifying Ripple’s competitive edge in the digital payments space.
XRP Price Fluctuations and the Wyckoff Theory
A historical perspective on the XRP price shows that it aligns with the Wyckoff Theory, which has been used to analyze market cycles for nearly a century. This theory outlines four major phases: accumulation, markup, distribution, and markdown.
Between 2022 and November 2024, the XRP price remained in the accumulation phase, characterized by long periods of consolidation within the range of $0.3260 to $0.9326. A breakout in November led to the markup phase, which increased investor interest and triggered the Fear of Missing Out (FOMO) effect.
However, the XRP price has now entered the distribution phase, which is often marked by high volatility. If Wyckoff’s theory is correct, the next phase—the markdown—could see the XRP price decline further, potentially reaching the support level of $0.9325. This support level aligns with the 78.6% Fibonacci retracement level and represents a potential 61% decline from current price levels.
Can XRP price reverse the downtrend?
While the bearish outlook dominates the current market sentiment, a trend reversal is possible. If XRP price surpasses its year-to-date high of $3.40, it could invalidate the bearish trajectory and signal a renewed bullish momentum.
For now, traders and investors should closely track market dynamics, regulatory developments, and institutional adoption to anticipate future XRP price movements. The coming months will be crucial in determining whether XRP can recover from its recent slump or continue its bearish decline.
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