XRP Price Plummets Below $1 Amid Slowing Demand and Technical Red Flags

XRP's price has dropped below $1, marking its lowest level since November last year and 72% below its all-time high. The decline is part of the ongoing bear market that started in July last year.

The token's underperformance this year can be attributed to dwindling demand for XRP ETFs, which have seen a significant drop in inflows. In fact, funds tracking the token had over $3.27 million this month so far, down from the $27 million they added last month. The peak inflow was recorded in May at $131 million.

Further data shows that demand for Ripple's USD stablecoin has also waned this month, with market capitalization falling to $1.71 billion from its year-to-date high of $1.81 billion. XRPScan data reveals a slowing growth trend in the XRP Ledger, including a drop in active accounts, transactions, and fees.

The technicals are also pointing to further downside for XRP, as it has formed a descending triangle pattern on its daily chart and moved below the lower side of this pattern. The Relative Strength Index (RSI) has also dropped below 50 and is trending downwards, indicating a potential continuation of the token's decline.