Why is XRP price down today?
XRP (XRP) has been showing a downward trend in recent weeks, and January 23 looks no different. On the day, the cryptocurrency fell by more than 4% to $0.50. The reasons for this failure are both technical in nature and affect market sentiment.
XRP price techniques and investor behavior
From a technical point of view, XRP's continued decline is part of a broader downtrend as the price tries to resist a multi-month downtrend line as seen below.
XRP's most recent trend line test came on December 28th. Since then, the price has dropped by 25%.
As of January 23rd, this cryptocurrency is moving towards another critical technical limit – multi-month ascending trendline support. This particular level of support has historically signaled the start of a broader recovery in previous months.
XRP shows bearish momentum, with price trading below key moving averages and RSI indicating potential oversold conditions. This may attract buyers looking for more bargains. current standards.
There is no XRP ETF product for now.
Aside from the technical issues, today's drop in XRP price follows the buzz surrounding the possible launch of an XRP exchange-traded fund in the US.
As of late, the market has been hoping that BlackRock, the world's largest asset manager, will launch a spot XRP ETF.
Those hopes were dashed on January 18, when the firm announced it had no plans to launch such an investment product, dimming hopes for XRP exposure and institutional investment.
After the clarification, the price of XRP dropped more than 13 percent.
Control tests
Even more impactful on investor sentiment, Ripple, the company behind XRP, has been involved in ongoing legal disputes with the US Securities and Exchange Commission (SEC).
The SEC's demand to release Ripple's financial statements and a lawsuit scheduled for April 2024 add to the air of regulatory uncertainty surrounding XRP. This may have dampened investor enthusiasm and may be partially responsible for the recent selloff.
The supply of XRP falls between the whales
XRPs fell today and in January, corresponding to a decrease in supply held by wealthy investors.
RELATED: Bitcoin and crypto markets are right, XRP price has hit a critical support level
In January, there was a significant decrease in the supply of XRP held by addresses with balances between 100 million and 1 billion tokens (green). This reduction corresponds to an increase in supply held by investors with 10 million to 100 million tokens (black).
This trend suggests that owners of the remaining 100-million-1-billion token pool are actively selling or redistributing their XRP holdings.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
