XRP Plummets Below $1 Amid Prolonged Bear Market
XRP has fallen below $1 as a prolonged bear market weighs on the token. The Ripple-linked cryptocurrency dropped to $0.995, its lowest level since November last year, and is now 72% below its all-time high.
The decline in XRP's price comes as demand for its funds wanes. According to ETF data, funds tracking the token have seen outflows this month, with their net assets dropping from $27 million to $3.27 million. At their peak, these funds had over $131 million in inflows in May this year.
The cumulative inflows of XRP ETFs stand at $1.51 billion, with the current net assets being $933 million. The largest funds are managed by companies like BitWise, Franklin, and Canary.
The decline in demand for XRP is also reflected in the growth of Ripple's USD stablecoin, which has seen its market capitalization fall to $1.71 billion from a year-to-date high of $1.81 billion.
Data from XRPScan shows that the XRP Ledger's growth has slowed in recent months. The number of active accounts, transactions, and fees have dropped, while the total value locked in its ecosystem has fallen to $29 million from a record high of $115 million.
The technicals also point to further downside for XRP. The daily chart shows a descending triangle pattern, and the token has moved below the 50-day Exponential Moving Average (EMA) and Relative Strength Index (RSI). A bullish reversal will be confirmed if it moves above the 200-day moving average level of $1.3514.