In the cryptocurrency market, XRP has been a notable player recently. On Monday, XRP’s price retreated to $2.14, marking a 26% decline from its peak this month, slipping into a bear market.
This downward trend coincides with a continuous drop in its social sentiment score and futures open interest. As per CoinGlass, the futures open interest plummeted to $1.89 billion on Monday, a significant fall from the year-to-date high of over $4.29 billion. Ripple’s daily trading volume has also decreased in the past few weeks, with its 24-hour volume dropping to over $10 billion, much lower than earlier.
However, XRP has some positive fundamentals. Despite the price decline, many large holders remain steadfast, not selling their assets. Santiment data shows that XRP has over 5.75 million holders, higher than the October low of 5.36 million. The number of active addresses has only slightly declined during the sell-off.
Moreover, XRP has several potential catalysts on the horizon. Just a week after its launch, the Ripple USD stablecoin’s market cap has climbed to over $53 million, although CoinMarketCap cautions that the assets in the RLUSD stablecoin remain unverified.
There’s also an increasing likelihood that the Securities and Exchange Commission will greenlight a spot XRP ETF in 2025. Donald Trump’s pledge to be more crypto – friendly and his move to form a crypto council add to this optimism. A spot ETF could potentially generate more excitement and demand for XRP.
From a technical analysis perspective, the daily chart reveals that XRP is gradually forming a bullish pennant pattern. This pattern, consisting of a vertical flag pole and a triangle currently in formation.
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