- XRP price crashed to its lowest level since November 2024.
- Technical analysis suggests that the token will continue falling.
- XRP Ledger has generated just $112,000 this year, a tiny amount for a large crypto project.
XRP price made a strong bearish breakout as buyers remained on the sidelines. The Ripple token dropped to $1.1233, its lowest level since November 2024. It has plunged by 70% from its July last year high as XRPL network fees slumped. So, what next for the XRP price as risks rise?
XRP Price Prediction: Technical Analysis
The weekly chart shows that the XRP token has plunged from a high of $3.6690 on July 19 to its current level of $1.1233, its lowest in almost two years.
It formed a double-top pattern at $3.40 and a neckline at $1.6220, its lowest point on April 7, and the 61.8% Fibonacci Retracement level. It has moved below that level and retested it, a bearish continuation sign in technical analysis.
XRP is about to form a death cross pattern, which happens when the 50-week and 200-week Weighted Moving Averages (WMA) cross each other. A death cross is one of the most common bearish signs in technical analysis.
READ MORE: Bitcoin Price Retests $62,000: Will BTC Rebound or Crash Further?
Ripple moved below the crucial support level at $1.1300, its lowest point on February 2nd this year. It is also nearing the 78.2% Fibonacci Retracement level. Also, the coin has moved below the Ichimoku cloud and the Supertrend indicator.
At the same time, the Relative Strength Index (RSI) has continued pointing downward. Therefore, the token will likely continue to fall, potentially reaching the key support at $1. A move below $1 will signal more downside, potentially reaching the key support level at $0.9216, its highest point in July 2023.
Ripple is Facing Some Major Headwinds
The ongoing XRP price retreat mirrors the performance of the broader crypto market. Bitcoin and Ethereum tokens have all plunged to their multi-month or multi-year lows. BTC price fell below $60,000, its lowest point in over a year, while Ethereum is hovering near $1,500.
XRP price has also dropped amid its major challenges. For example, spot XRP ETFs have added just $2.6 million in assets this month, much lower than the $131 million in the previous month. These funds have now had over $1.43 billion in net inflows, bringing the net assets to over $928 million.
Most importantly, the total value locked (TVL) in the XRP Ledger has plunged in the past few months. It has a TVL of just $38 million, its lowest level since February this year. Its TVL stood at over $115 million at its peak last year.
Most notably, XRP Ledger has made just $114,000 this year alone, meaning it may not reach the $2.1 million it made last year. The fact that the XRP Ledger made less than $120k this year is notable, as XRP has a market cap of over $70 billion.
READ MORE: Crypto Rally Today: Risk Remains as Toncoin, LUNC, Dash, Canton Rise
