XRP Drops 13.4% In Week, Hits 3-Month Low At $2.13

XRP, the fourth-largest cryptocurrency, has experienced a significant decline, dropping below the psychological price of $2 and reaching a 3-month low. This downturn has been accompanied by bearish on-chain metrics, indicating a decrease in market activity as traders exit their positions. According to Coinglass data, XRP’s open interest has declined by 3.78%, suggesting a reduction in market engagement.

Renowned market analyst Ali Martinez has pointed out that XRP’s recent price movement has broken out of a head-and-shoulders pattern, which typically signals a trend reversal. Martinez believes that this pattern sets the stage for a potential move to $1.30, highlighting the risk of XRP dropping to this zone. The head-and-shoulders pattern is a technical analysis indicator that often predicts a reversal in the trend, which in this case could lead to a further decline in XRP’s value.

According to CoinGecko data, XRP has seen a 13.4% decrease in the past week, reaching $2.13 at the time of writing. This decline has raised concerns among investors and analysts about the future trajectory of the cryptocurrency. Despite the bearish market conditions, there are hopes that the launch of an XRP exchange-traded fund (ETF) by asset management firm Teucrium could bring about a positive change. The ETF, trading under the name XXRP, has already generated over $5.43 million in turnover, indicating a significant level of interest despite the current market conditions.

Senior analyst Eric Balchunas has noted that the volume generated by XXRP on its first day of trading is respectable, especially considering the market conditions. He compared it to other ETF launches, highlighting that XXRP’s performance puts it in the top 5% of new ETF launches. ETFs are often seen as game-changers because they can trigger heightened institutional interest in an asset, which could potentially benefit XRP.

In addition to the ETF launch, Ripple’s acquisition of prime brokerage firm Hidden Road for $1.25 billion is expected to expand its cross-border payment capabilities. This deal is anticipated to position XRP at the center of Ripple’s payment sphere, potentially leading to increased utility and adoption of the cryptocurrency. The acquisition is seen as a strategic move to enhance Ripple’s market presence and drive the growth of XRP.