XRP price crashed below the psychological point at $2 on Monday as the crypto market crash continued. Ripple token trades at its lowest swing since April 9, down by over 42% from its highest point this year, erasing billions of dollars in value.
XRP Price Falls as XXRP ETF Inflows Slow
The XRP price has been in a strong downward trend over the past few days, lacking a clear catalyst. This downtrend continued this week after the United States launched a bomb attack against Iranian nuclear sites.
The attack raised concerns about another protracted war in the Middle East, which could lead to increased volatility in the market. This attack also raised concerns that the soaring crude oil prices will make it difficult for the Federal Reserve to cut rates.
XRP price also plunged after the Securities and Exchange Commission (SEC) delayed the approval of the Franklin Templeton XRP ETF. The agency wants to review the other ETFs by companies like Bitwise, VanEck, and Grayscale.
XRP price has also pulled back as inflows into the recently approved Teucrium XRP ETF (XXRP) have slowed. Data show that the fund had just $3.9 million in inflows last week, down from $5.1 million the week before. Its weekly inflows peaked at over $31 million in May.
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The XXRP ETF has over $125 million in assets, a testament to the demand for XRP ETFs. Analysts believe that the spot XRP ETFs will have substantial inflows, with JPMorgan analysts estimating over $8 billion in inflows.
The Ripple price has also dropped, even after the US Senate approved the GENIUS Act to regulate stablecoins. XRP will benefit from this bill because Ripple USD (RLUSD), its stablecoin, is regulated by the US. RLUSD has gained over $429 million in value, almost 7 months after launch.
XRP Price Technical Analysis
The daily timeframe chart shows that the XRP price has been in a downtrend after peaking at $3.4 in January. It has moved below the 50-day and 25-day Exponential Moving Averages (EMA), a sign that bears have prevailed.
XRP is also trading at the 50% Fibonacci Retracement level at $1.9562. It is also slightly above the key support at $1.9097, the lower side of the descending triangle pattern,
The Percentage Price Oscillator (PPO) has moved below the neutral point, while other oscillators have sunk. Therefore, the token is likely to experience a bearish breakdown, with the next price target at $1.6200, which corresponds to the lowest swing point on April 7. A break below that level will point to further downside to $1.
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