- XRP price has slipped by over 50% this year as demand wanes.
- Demand in the futures and spot markets has continued falling.
- Technicals suggest that the token may continue falling.
XRP price slipped for three consecutive days as demand for cryptocurrencies continued to wane this week. Ripple token dropped to $1.1473, its lowest level since June 14 this year. It has slumped by 52% from its year-to-date high, erasing billions of dollars in value.
XRP Price Falling as Demand Thins
The ongoing weakness in XRP price has coincided with that of top assets like Bitcoin, Ethereum, and Cardano. Bitcoin has dropped from its all-time high of $126,200 to $62,000, and Ethereum moved from close to $5,000 to $1,700 today.
This retreat is mostly due to waning demand over the past few months as investors rotated into the booming AI industry. Top AI companies like Sandisk, Micron, and Western Digital have more than doubled this year. This surge has driven the S&P 500 and Nasdaq 100 to their record highs. Internationally, leading indices such as the Kospi and the Nikkei 225 have soared to all-time highs.
Data shows that XRP demand has been quite low in the spot, futures, and ETF markets this year. The volume of XRP tokens traded in the last 24 hours stood at about $1.8 billion. While this is a big number, it represents a volume-to-market cap ratio of 2.56%.
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The same trend is happening in the futures market, where the open interest has dropped to $2.6 billion from last year’s high of over $10 billion. That is a sign that investors are not taking on substantial risk when betting on XRP.
XRP’s ETF demand has also waned a bit in the past few months. They have added just $23 million this month, bringing the cumulative net inflows to $1.45 billion.
While these inflows are better than those of Bitcoin and Ethereum, they pale in comparison to the inflows they saw in November and December. The funds added $666 million and $500 million in the two respective months.
All this is happening in a year that Ripple Labs has made some major announcements, including its $50 billion valuation. It also acquired several notable licenses, including in the UK, Australia, and the European Union.
Ripple Price Prediction: Technical Analysis
The daily chart shows that the XRP token remained within a narrow range between $1.2930 and $1.5465 from February to June. It then made a bearish breakout in June, reaching a low of $1.0470.
The coin then formed a break-and-retest pattern, retesting the lower side of the channel on June 15. This pattern often leads to a continuation of the original trend. It has also moved below the 50-day and 100-day Exponential Moving Averages (EMA).
Therefore, the path of the least resistance for the pair is bearish, with the next key target being the psychological level of $1.
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