XRP Price Plummets 30% Amid Bear Market Fears

The XRP token has suffered a significant reversal this month, plummeting by almost 30% from its January high to enter a bear market. As of Wednesday, XRP crashed to a low of $2.4335, accompanied by a sharp decline in daily trading volume and futures open interest.

XRP Trading Volume and Futures Open Interest Plummet

According to CoinGlass data, futures open interest dropped to $3.45 billion on Wednesday, down from $7.45 billion in January. This significant decline indicates a decrease in investor demand over the past few weeks. Additionally, the daily XRP volume has plummeted to $4 billion from over $32 billion a week ago.

Potential Catalysts for XRP Price Recovery

Several factors may contribute to a potential XRP price surge in the coming months. Notably, Polymarket’s odds of a spot Ripple ETF have jumped to over 80%. JPMorgan estimates that a spot XRP ETF may attract over $8 billion in inflows in its first year, exceeding the $3 billion in inflows accumulated by spot Ethereum ETFs.

Ripple’s Expansion Efforts Gain Momentum

Ripple Labs continues to secure partnerships that solidify its position in the financial services industry. Recently, the company partnered with Unicambio, a Portuguese currency exchange provider, to utilize its network for currency transactions. This collaboration enables Unicambio’s corporate customers to facilitate near-instant fund transfers between Portugal and Brazil.

Ripple Receives Licenses and Expands Stablecoin Presence

Ripple has obtained a money transmitter license in New York and Texas, allowing the company to operate its services in these major US states. Furthermore, Ripple USD has gained market share, with its daily volume exceeding $200 million, surpassing that of many other stablecoins.

Wyckoff Theory Analysis: XRP Price Movement

The Wyckoff Theory, a 95-year-old framework, explains the movement of financial assets over time. It identifies four phases: accumulation, markup, distribution, and markdown. XRP price remained in an accumulation phase between 2022 and November 2024, characterized by consolidation. After entering the markup phase in November, XRP has now transitioned into the distribution phase, marked by high volatility.

Potential Bearish Outlook and Support Levels

If the Wyckoff Theory holds true, XRP may enter the markdown phase, potentially dropping to the support level at $0.9325. This support coincides with the 78.6% retracement point and is 61% below the current level. However, a bullish breakout above the year-to-date high of $3.40 would invalidate the bearish view.

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Keep an eye on XRP’s price movement and potential catalysts that may influence its future performance.

Tips for XRP Investors:

  • Monitor XRP’s price movement and adjust your investment strategy accordingly.
  • Keep an eye on potential catalysts, such as the launch of a spot Ripple ETF.
  • Consider the Wyckoff Theory’s phases and their implications for XRP’s price movement.
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