The XRP price crash continued on Tuesday, as crypto market weakness accelerated and the Ripple Swell event got underway in New York.
Summary
- XRP price has crashed by 37% from its peak in July this year.
- The recent crash is part of the ongoing crypto market retreat.
- Ripple price is about to form a death cross pattern on the daily chart.
Why the Ripple price is falling
Ripple (XRP) price dropped to $2.27, down approximately 37% from its year-to-date high. It has fallen by almost 10% in the last seven days, bringing its market cap to $137 billion.
The ongoing XRP price crash is happening because of the weakness in the crypto market that has pushed most tokens down sharply. Bitcoin (BTC) plunged below $104,000 for the first time in weeks, while the market capitalization of all tokens plunged to $3.4 trillion.
The Ripple price has also crashed due to ongoing deleveraging among traders, with liquidations jumping. Data compiled by CoinGlass shows that XRP’s futures open interest has plunged to $3.5 billion, its lowest level since October 19.
Its open interest stood at over $9 billion before the Oct. 11 liquidation event that cost 1.6 million over $20 billion within a day.
On the positive side, XRP price has numerous potential catalysts that may boost its performance once the market stabilizes.
One of them is the recently launched REX-Osprey XRP ETF is doing well despite the ongoing crypto market crash. It now holds about $120 million in assets, a good number for a newly launched ETF with an expense ratio of 0.75%.
There are chances that the other XRP ETFs will be launched soon. For example, Bitwise updated its filing to include the exchange and the expense ratio.
The other potential XRP news is that the Ripple USD stablecoin is on a path towards hitting the $1 billion milestone, one year after launch. This growth makes it one of the fastest-growing stablecoins in the industry, a move that will benefit XRP price as more users embrace it on the XRP Ledger network.
Meanwhile, Ripple Labs has made some notable acquisitions recently that will help it to boost the XRP Ledger network. It acquired Palisade, a company that offers institutional custody solutions.
It recently acquired GTreasury, Rail, and Hidden Road, which is now known as Ripple Prime.
Meanwhile, the Ripple Swell event is happening in New York on Tuesday and Wednesday. This event brings together some of the world’s largest companies, including Nasdaq Inc., BlackRock, and Franklin Templeton.
XRP price technical analysis
The daily timeframe chart shows that the XRP price has crashed in the past few months, moving from $3.65 in July to $2.26 today.
It has formed a descending channel and is nearing its lower side. Also, the token has moved below the 50-day and 200-day Exponential Moving Averages, and is about to form a death cross pattern.
XRP price has also moved below the Supertrend indicator, while the two lines of the True Strength Index have pointed downwards.
Therefore, the Ripple price will likely continue falling, potentially to the key support at $2. If it falls below the key support, the forming double-bottom pattern will be invalidated.