XRP Price Falls Amid Weak Market Sentiment
Ripple (XRP) is trading near $2.30 on Thursday. The drop follows a weak trend in the overall cryptocurrency market. Lower retail demand, less on-chain activity, and early profit-taking slowed XRP’s recovery.
XRP Network Activity and Futures Open Interest Decline
- The XRP Ledger saw fewer daily unique addresses, dropping from 54,000 on October 10 to 44,000 on Wednesday. This 18.5% decrease shows reduced user engagement.
- New XRP addresses fluctuated, with a sharp decline to 4,770 new addresses on Wednesday from about 12,000 on Sunday. The Sunday spike may relate to the RLUSD stablecoin hitting $1 billion market cap.
- XRP’s futures open interest fell sharply from $9.09 billion on October 7 to $3.54 billion by Thursday. This suggests traders remain cautious and hesitant about XRP’s recovery.
Ripple Valuation Reaches $40 Billion After $500 Million Funding
Ripple raised $500 million in new funding, raising its valuation to $40 billion. The company plans to use the funds to grow and strengthen ties with financial institutions. Ripple’s president, Monica Long, said they focus on crypto custody, prime brokerage, and corporate treasury management.
Long emphasized that Ripple plans to stay private despite market trends. The firm is concentrating on an IPO and expanding through mergers and partnerships.
Technical Outlook: XRP Faces Downward Pressure
XRP trades below $2.30, down more than 2.5%. The Relative Strength Index (RSI) is near 40 and heading lower, indicating growing bearish pressure.
An upcoming Death Cross pattern may speed up declines. This pattern occurs when the 50-day EMA near $2.60 crosses below the 200-day EMA at $2.59.
If buyers step in, XRP could gain strength and test resistance above $2.59.
