XRP price continued its downward trend and is nearing the year-to-date low as investors reacted to the ongoing risk-off sentiment in the crypto industry. Ripple token fell to $1.026, down by 40% from its highest point in August. This sell-off may continue as spot XRP ETFs continue to see outflows.
XRP Price Drops as ETF Outflows Jump
The Ripple token extended its downtrend as risk-off sentiment spread across the market. The Crypto Fear and Greed Index dropped to 18, in the extreme fear zone. The decline intensified after the US midterm elections, in which Democrats won by a large margin. They are on track to control both the Senate (56 seats) and the House of Representatives, which may lead to tighter crypto regulation.
American investors have continued to sell their crypto ETFs ahead of the new term in Congress. Spot XRP ETFs have had over $18 million in outflows this month, bringing the cumulative outflows to $1.79 billion. These funds now hold $1.16 billion in assets under management (AUM).
The outflows are important because November is the first month in which these ETFs have lost assets since March. Similarly, spot Bitcoin and Ethereum ETFs have shed billions of dollars in assets in the past two months. Rising crypto ETF outflows are a sign that demand among investors is fading.
Rising Odds of Federal Reserve Interest Rate Hikes
XRP price is falling as investors remain concerned about the Federal Reserve after the recent macro numbers from the United States. Data released last week showed that the economy created 165,000 jobs last month, while the unemployment rate dropped to 4.1%. Further numbers showed that the country’s inflation remained stubbornly high during the month.
Inflation may continue rising now that oil prices are rising. Brent and West Texas Intermediate (WTI) jumped to $96 and $89, and this trend may continue now that the US and Iran are no longer talking. In a statement on Thursday, President Donald Trump said that he had asked JD Vance to stop talking to the Iranians as oil prices fell.
There is still a possibility that the two sides will go back to fighting, which will lead to higher inflation. Indeed, Christopher Waller, a Fed Governor, has warned that the bank will hike interest rates by 0.50%.
Ripple USD Market Capitalization is Rising
On the positive side, there are signs that demand for Ripple USD (RLUSD) stablecoin is rising. CoinMarketCap data shows that the RLUSD supply has jumped to a record high of $2.7 billion, with its 24-hour volume being over $200 million.
The rising RLUSD supply is positive because it comes when the market capitalization of USD Coin (USDC) has continued falling. USDT’s supply has also dropped in the past few months.
In theory, the rising RLUSD supply is a bullish aspect since it leads to more activity in the XRP Ledger, which leads to more token burns.
XRP Price Technical Analysis
The daily chart shows that the XRP token has been in a steady downward trend in the past few months. It formed a double-top pattern at $1.6585 and a neckline at $1.2492. This pattern often leads to a deep dive over time.
The token formed a death cross pattern as the 50- and 200-day moving averages crossed. Also, the Relative Strength Index (RSI) has continued falling. Therefore, the token will likely continue falling as sellers target the key support level of $0.9868. A move below that level will point to more downside over time.
This article provides cryptocurrency market information, not financial or investment advice. ETF flows, technical indicators and market forecasts cannot guarantee future prices. Digital assets involve substantial financial risk.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
About this article
This report follows our Editorial Policy, Fact-Checking Standards and Code of Ethics. Found an inaccuracy? See Corrections.
Disclaimer. Informational only, not financial advice. Crypto, forex and stocks are volatile, high-risk assets — always do your own research and consult a qualified adviser.
