XRP is experiencing a significant price decline, and several key factors are contributing to the token’s ongoing slump. The cryptocurrency has plummeted to $2.44 — its lowest point since October 24 — marking a 35% fall from its yearly peak. This sharp drop has dragged XRP’s market cap down to around $157 billion, reflecting broader bearish sentiment across both the crypto and stock markets.
One of the primary triggers behind this downturn is the recent macroeconomic developments. Specifically, the Federal Reserve’s decision to lower interest rates by 0.25% and its announcement to conclude quantitative tightening in December were largely anticipated by the market. While these moves are generally supportive for risk assets, including cryptocurrencies, investors had already priced in the news. As a result, many took this opportunity to offload positions — a classic case of “sell the news.”
Adding to the mix, the recent meeting between Donald Trump and Chinese President Xi Jinping at the APEC summit concluded positively with mutual concessions. However, despite the favorable political outcome, crypto markets, including XRP, continued to fall. Again, this points to a market that had already anticipated the positive developments and is now searching for the next major catalyst to sustain upward momentum.
On a more technical level, XRP is facing pressure from declining futures open interest. Data shows that open interest dropped to $4.26 billion, down from $4.46 billion earlier in the week — and a far cry from the $11 billion peak seen just a few months ago. This reduction indicates a pullback in speculative activity and weakening investor conviction.
Chart analysis also paints a bearish picture for XRP. The token has been forming a descending triangle — a pattern that typically signals a continuation of a downward trend. A bearish breakout occurred when XRP slipped below the $2.70 support level, followed by a brief retest of this level, which failed to hold. The setup suggests a possible continuation of the decline, with a looming “death cross” — the convergence of the 50-day and 200-day moving averages — indicating further downside. If this technical pattern confirms, XRP could be heading toward the $2.00 mark, representing an additional 18% drop from current levels.
Despite the ongoing correction, not all indicators are negative. Ripple’s USD-backed stablecoin, RLUSD, has shown impressive growth. Over the past 30 days, the supply of RLUSD has surged by 15% to $908 million. Similarly, the number of wallet addresses holding RLUSD has increased by 27%, and the total transaction volume has surpassed $4 billion. These figures indicate growing interest and utility within Ripple’s ecosystem, which could act as a long-term bullish driver.
Moreover, the recently launched XRPR ETF is gaining traction, having already attracted over $113 million in assets under management. Market participants are optimistic that the SEC will approve additional XRP-based ETFs before the year ends. Such approvals could significantly boost institutional interest and liquidity for XRP, offering a counterpoint to the current downtrend.
It’s also worth noting that XRP remains a key player in cross-border payments and enterprise blockchain solutions. Ripple’s partnerships with financial institutions and its focus on real-world use cases provide a strong foundation for future recovery, even if short-term price action remains volatile.
Another factor to consider is the general sentiment in the crypto market. With Bitcoin and other major altcoins also experiencing corrections, XRP is not falling in isolation. Broader market fear, uncertainty around regulations, and macroeconomic instability are contributing to a risk-off environment that affects nearly all digital assets.
Looking ahead, XRP investors will be closely watching several variables: macroeconomic indicators, regulatory updates related to crypto ETFs, and any further developments from the Ripple Labs team, particularly in terms of integration with financial institutions and adoption of its payment protocols.
In summary, while XRP’s recent price crash reflects a combination of market-wide sell-offs, technical weakness, and reduced speculative interest, there are still promising signs in the background. Growing stablecoin adoption, ETF momentum, and Ripple’s enterprise traction could eventually support a turnaround. For now, however, the path remains uncertain, and the next few weeks will be critical in determining whether XRP can stabilize or continues its descent toward the $2.00 support level.