XRP (CRYPTO: XRP) has experienced a significant decline over the past ten days, hitting its lowest point since August 2026. The token has plummeted by over 41% from its August high, with several factors contributing to its downward spiral. The broader crypto market, including Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), has also entered a bear market, exacerbating the pressure on XRP.
The recent midterm elections, which saw Democrats gain control of the House and Senate, have raised concerns about stricter regulations for the crypto industry. This political shift is unlikely to favor crypto-friendly legislation, adding to the market's uncertainty. Additionally, rising US bond yields, driven by strong jobs and inflation data, have fueled risk-off sentiment. Economists anticipate further interest rate hikes by the Federal Reserve in December and January, which could continue to weigh on XRP.
The Crypto Fear and Greed Index has dropped to 18, indicating extreme fear among investors. This sentiment has led to significant outflows from XRP ETFs, reaching $19.6 million this month, the first monthly net outflow since March. XRP futures open interest has also fallen to a multi-month low of $2.21 billion, down from $3.7 billion in September, signaling weakened demand in the futures market.
Technically, XRP has breached the crucial support level of $1.2492 and is now hovering near a key level that aligns with its lowest swing in August. The Average Directional Index (ADX) has risen to 30.3, suggesting that the downward trend is gaining momentum. Analysts warn that XRP could continue its decline, potentially reaching the support level of $0.90.