XRP price has plunged into a bear market and formed a death cross pattern despite some important Ripple news. Ripple fell to a low of $2.2085, down by over 40% from its highest point this year. This article explores why the XRP token is crashing despite some notable news.
XRP Price Technicals Point to More Downside
The daily chart shows that the XRP price has plummeted in the past few months. It plunged from the year-to-date high of $3.660 in July to $2.20 today.
The current price is notable for being slightly above the ascending trendline connecting the lowest swings since 3rd February this year. It has struggled to move below this level several times this month.
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On the downside, the Ripple price has formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMAs) crossed. This pattern is one of the most common bearish patterns in technical analysis.
XRP price has moved between the 50% and 38.2% Fibonacci Retracement levels. It has also moved below the Supertrend indicator, meaning that bears are in control.
The Relative Strength Index (RSI) and the MACD indicators have moved below the neutral level. Therefore, the token will likely continue falling as sellers target the psychological point at $2. A move below that level will point to more downside, potentially to the key support at $1.7652.
The bearish XRP price forecast will become invalid if it moves above the 50-day and 200-day moving averages point at $2.50. A move above that level will point to more gains, potentially to the key resistance level at $3.660, up by 65% from the current level.
Ripple Price is Falling Despite Good XRP News
The XRP price has remained under pressure in the past few weeks despite key positive news. One of the most positive news was the recent approval of the Canary XRP ETF (XRPC), which has accumulated over $240 million in inflows.
More XRP ETFs will likely be launched soon now that eight of them have been launched on DTCC platform. As such, there is a likelihood that billions in new money will come into XRP soon.
The other important XRP news is that the Ripple USD (RLUSD) growth is accelerating. Data shows that the supply of RLUSD has increased by 25% in the last 30 days to $1.1 billion, while the number of addresses has jumped to 6.1k. The adjusted RLUSD volume was over $3.7 billion.
XRP price has also wavered despite the recent $500 million investment from Ken Griffin’s Citadel and Fortress. This investment gave it a valuation of over $40 billion, making it one of the biggest players in the crypto industry.
Why XRP is Retreating
The XRP price is falling because of the ongoing crypto market crash, which has affected Bitcoin and most altcoins. Indeed, the market capitalization of all coins has dropped by about $1 trillion in the past few months to around $3.2 trillion at present.
XRP token has plunged because of the ongoing retreat of the Crypto Fear and Greed Index, which has moved to the fear zone. It is common for all cryptocurrencies to drop when there is fear in the market.
XRP price is also falling as the open interest in the futures market and the volume in the spot market continue to retreat. The token’s funding rate has moved to the negative zone, while the open interest has tumbled to $3.6 billion, down from $10.7 billion.
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