Key Insights:
- XRP’s price struggles as ETFs experience $40 million outflows, impacting investor confidence.
- Ripple USD stablecoin growth slows, but Binance listing and cross-chain expansion may provide some relief.
- A bearish pennant pattern on the chart signals potential for more downside movement for XRP in the near future.
XRP has been in a consolidation phase recently, showing little movement despite market volatility. The cryptocurrency’s price has hovered around $1.92, remaining significantly lower than its year-to-date high of $2.41. This stagnant price action comes at a time when overall market sentiment has weakened, with investors turning to stronger performers, such as stocks and precious metals.
XRP’s performance has been heavily impacted by the worst week for spot XRP ETFs since their inception in November. These ETFs experienced over $40 million in outflows, the largest on record, dragging down investor confidence. This development marks a crucial turning point, as it is the first time such funds have faced a weekly outflow. Among the affected funds, 21Shares’ TOXR suffered the most. While inflows since the ETFs’ launch totaled $1.23 billion, the latest outflows have dampened the outlook for XRP’s price.
Ripple USD Stablecoin Faces Slower Growth
In addition to ETF struggles, XRP’s native stablecoin, Ripple USD (RLUSD), has seen slower growth. Its market capitalization has remained stagnant at around $1.3 billion for several months, a sign that investor interest in the asset may be waning. Despite this, the listing of RLUSD on Binance and its upcoming expansion to other chains via Wormhole integration provide some optimism for future growth.
Looking at the technical side, XRP’s price chart shows the formation of a bearish pennant pattern. This pattern, characterized by a symmetrical triangle and a vertical line, suggests that further downside is likely in the near future. XRP has struggled to stay above both the 50-period moving average and the 50-period exponential moving average, reinforcing the bearish outlook. A breakdown from this pennant pattern could lead to a drop towards the next key support level at $1.77, approximately 7.65% lower than the current price.
Market Sentiment Shifts Towards Stocks
The recent weakness in XRP mirrors broader trends within the cryptocurrency market, with Bitcoin and Ethereum also experiencing significant declines. This shift in investor sentiment is partly due to the strong performance of the stock market, where indices like the Dow Jones and S&P 500 are approaching record highs. Precious metals such as gold and silver have also seen a rise, further pulling attention away from digital assets.
