XRP (CRYPTO: XRP) price dropped below the crucial support level of $1 as the bear market that started in July last year continued. The Ripple-linked token dropped to $0.995, its lowest level since November last year, and 72% below its all-time high.
XRP Price Drops as ETF Demand and Ripple USD Growth Stalls
The XRP token has dropped sharply this year, underperforming top coins like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
ETF data shows that demand for its funds has continued to wane this year. Funds tracking the token had over $3.27 million this month so far, down from the $27 million they added last month. At their peak, these funds had over $131 million in inflows in May this year.
XRP ETFs have had over $1.51 billion in cumulative inflows, with the current net assets being $933 million. The biggest funds are by companies like BitWise, Franklin, and Canary.
The fading demand for XRP ETFs is a sign that demand from American institutional and retail investors has faded as the crypto winter has continued.
Further data shows that demand for the Ripple USD stablecoin has continued to wane this month. The stablecoin, which is crucial to Ripple’s growth, has waned recently, with the market capitalization falling to $1.71 billion from the year-to-date high of $1.81 billion.
XRPScan data shows that the XRP Ledger’s growth has also slowed in the past few months. The number of active accounts, transactions, and fees have dropped. According to DeFi Llama, the total value locked in its ecosystem has dropped to $29 million from a record high of $115 million. Its chain fees dropped to just $48,120 in the first quarter from $1.4 million at its peak in the fourth quarter of 2024.
XRP Technicals Point to Further Downside
The daily chart shows that the XRP price could be at risk of further downside in the near term. It has been forming a descending triangle pattern and has now moved below the lower side. This pattern normally leads to more downside over time.
The token has also dropped below the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has dropped below 50 and pointed downwards in the past few months.
Therefore, there is a risk that the token will continue falling, potentially to the psychological level of $0.50. A bullish reversal will be confirmed if it moves above the 200-day moving average level of $1.3514.
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