Here’s why XRP price is crashing today
XRP price continued its recent crash, mirroring the performance of the stock and crypto market.
- XRP price has crashed this week as the crypto market plunge accelerated.
- The token is about to form a death cross pattern on the daily chart.
- Ripple has also formed a break-and-retest pattern.
Ripple (XRP) token dropped to a low of $2.4400, its lowest level since October 24 and 35% below the highest point this year. This plunge brought its market cap to over $157 billion.
XRP price dropped as because of the ongoing crypto market crash after the Federal Reserve decision and Donald Trump’s meeting with Xi Jinping at the APEC summit.
The Fed, as widely expected, decided to cut interest rates by 0.25%. It also revealed that it will end its quantitative tightening process in December.
Donald Trump’s meeting with Xi Jinping went well, with the two making some concessions.
Therefore, while these are all good news, XRP and the crypto market are falling because they were priced in. Investors are simply selling the news and possibly waiting for the next catalyst.
XRP price is also falling as its futures open interest drop. Data compiled by CoinGlass shows that it dropped to $4.26 billion, down from this week’s high of $4.46 billion. It peaked at over $11 billion a few months ago.
Still, despite these challenges, XRP has numerous potential bullish catalysts. For example, Ripple USD stablecoin continues doing well this year. Its supply has jumped by 15% in the last 30 days to $908 million.
The number of RLUSD stablecoin addresses jumped by 27% in the last 30 days, while the volume soared to over $4 billion.
Additionally, the recently launched XRPR ETF has accumulated over $113 million in assets. The SEC will likely approve more XRP ETFs before the end of the year, which will lead to more demand.
XRP price technical analysis
The daily chart shows that the XRP price has been in a downtrend in the past few months. It formed a descending triangle pattern whose lower side was at $2.70.
The token made a bearish breakout earlier this month as the crypto market plunged. It then did a break-and-retest pattern by moving back to $2.70.
Ripple price is about to form a death cross pattern as the spread between the 50-day and 200-day moving averages narrows. Therefore, the token will likely continue falling, with the next target being at $2, down by 18% from the current level.
