XRP price continued its strong downward momentum and lost a crucial support level as the crypto market crash gained steam.
Summary
- XRP price has dropped for five consecutive weeks and moved to the lowest level since November 2024.
- The decline coincided with the ongoing crypto market crash.
- It dropped and moved below the key support level at $1.5463.
The Ripple (XRP) token continued to fall, reaching a low of $1.3495, its lowest level since November 2024. It has been in a free fall after falling from the record high of $3.6650.
The ongoing XRP crash has led to a $128 billion wipeout, with the market capitalization dropping from a record high of $210 billion in July last year to the current $82 billion.
The main reason for the ongoing drop is the ongoing performance of Bitcoin and other cryptocurrencies as concerns about a potential strike on Iran, which may happen at any time. Data on Polymarket shows that odds of this attack have risen since Trump sent an armada to the region.
An attack would increase geopolitical risks and drive up crude oil prices. Data shows that Brent and the West Texas Intermediate rose to $67 and $66, respectively. Higher oil prices would lead to higher inflation and make it hard for the Federal Reserve to cut interest rates.
More data shows that demand for spot XRP ETFs has waned in the past few weeks as investors have remained on the sidelines. According to SoSoValue, spot XRP ETFs have added over $28 million in inflows this month, down from over $666 million in November.
On the positive side, the XRP Ledger network is doing well, with the amount of assets on Ripple USD growing to over $1.4 billion. Its volume has continued growing in the past few months. Similarly, the amount of assets in its real-world asset tokenization ecosystem has jumped by over 270% in the last 30 days.
XRP Ledger is also preparing to launch a permissioned decentralized exchange platform that will be useful for financial institutions.
XRP price prediction: Technical analysis
The weekly chart shows that the XRP price continued its strong downward trend in the past few months, moving from a high of $3.6650 to the current level of $1.3565.
Most importantly, the coin has now moved below the important support level at $1.5465, its lowest level in April last year and the 50% Fibonacci Retracement level. Moving below that level is a sign that bears have prevailed.
The coin is now attempting to move below the 200-week Exponential Moving Average, which will confirm the bearish outlook.
At the same time, the Relative Strength Index and the Stochastic Oscillator have continued moving downwards.
Therefore, the most likely XRP price prediction is where it continues falling, potentially to the 78.6% Fibonacci Retracement level at $1, which is about 26% below the current level.