XRP has experienced a significant decline, reaching a 24-hour low of $2.44, its weakest point since October 24. This marks a substantial drop of over 33% from its all-time high of $3.65, which was achieved in July. Consequently, XRP's market capitalization has fallen below the $150 billion mark, and the asset is currently trading at $2.48, struggling to regain this significant benchmark.
This downturn in XRP's price is not an isolated event but rather mirrors a widespread sell-off observed across the entire cryptocurrency market. This broader market weakness is largely attributed to recent macroeconomic developments and a noticeable shift in investor sentiment.
Macroeconomic Factors Pressure Crypto Prices
The current weakness in XRP's price is closely aligned with a broader market downturn. This downturn has been triggered by a confluence of factors, including the Federal Reserve's latest monetary policy decisions and ongoing geopolitical developments involving the United States and China.
As anticipated by many, the Federal Reserve announced a reduction in interest rates by 0.25% and confirmed that its quantitative tightening program would conclude in December. Although these measures are typically considered supportive of risk assets, the market had largely priced in these expectations.
In the aftermath of these announcements, investors appear to be engaging in "sell-the-news" behavior, opting to reduce their exposure rather than increase it. Adding to the downward pressure on market sentiment was the meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the APEC summit.
While reports indicated that the discussions proceeded smoothly and included some concessions from both sides, the event did not deliver any new positive surprises for investors. The combined effect of these developments has led to widespread profit-taking across various cryptocurrencies, including XRP, as traders actively search for the next significant market catalyst.
Market Activity and Emerging Catalysts
XRP's recent price decline has been accompanied by a noticeable reduction in speculative trading activity. Data from CoinGlass indicates that the futures open interest has decreased to approximately $4.26 billion, down from $4.46 billion recorded earlier in the week. This figure is considerably lower than the $11 billion observed at the beginning of the year.
This drop suggests that leveraged traders are actively reducing their exposure in response to increasing market volatility. Despite the current price pressure, Ripple's ecosystem continues to demonstrate robust activity. The supply of its RLUSD stablecoin has seen a 15% increase over the past month, and the newly launched XRPR ETF has attracted over $113 million in assets. These developments indicate a degree of longer-term resilience within the network.
Technical Outlook for XRP
From a technical perspective, XRP's price structure has shifted decisively towards bearish territory. The digital asset has broken below its multi-week support level at $2.7, thereby completing a descending triangle formation. This breakdown was subsequently confirmed by a failed retest, which solidified resistance at that particular level.
Momentum indicators are currently signaling continued weakness, while trading volumes remain subdued, reflecting limited buying pressure in the market. Furthermore, the 50-day moving average is converging with the 200-day moving average, forming a pattern often referred to as a "death cross." This technical pattern is frequently interpreted as a signal of sustained downside movement.
Should this technical formation fully materialize, XRP could potentially see a further decline towards the $2 support zone. This area might serve as a potential point where buyers could attempt to establish a short-term base before any prospective recovery can take place.