XRP price remains in a deep bear market after plunging by 34% from its highest point this year.
Summary
- XRP price is about to form a death cross pattern on the daily chart.
- The last time it formed this pattern was in 2021 and it then crashed by 65%.
- XRP has more risks, including the falling burn rate and insider selling.
Ripple (XRP) token was trading at $2.4137 today, Oct. 23, inside a range it has been stuck in recently. This crash price action has mirrored that of most altcoins, which plunged on Oct. 11, bounced back, and then consolidated.
XRP price has crashed despite having some of the top fundamentals in the crypto industry. For example, the recently launched REX-Oprey XRP ETF has already crossed the $100 million asset milestone a month after its launch.
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Similarly, the leveraged Teucrium XRP ETF has maintained over $314 million in assets despite the recent crash. Leveraged ETFs lose assets at a faster pace than the normal ones during bear markets.
Further, XRP Ledger’s ecosystem is doing well, especially in the real-world asset industry. Data shows that the total asset in its RWA ecosystem have jumped by 5% in the last 30 days to $362 million.
XRP is also benefiting as Ripple becomes a major player in the stablecoin industry. Ripple USD, which was launched late last year, is now nearing the $1 billion asset market cap.
Most importantly, there are signs that the Securities and Exchange Commission will approve several XRP ETFs once the government shutdown ends.
XRP price faces some potential risks
Still, there are signs that the Ripple price has numerous risks that may hinder its price. For one, Chris Larsen, one of its founders has been cashing out recently. It is estimated that he has sold tokens worth over $700 million in the past few months. Also, the XRP burn rate has stalled as the number of transactions in the network has dropped.
The other risk is that the spread between the 50-day and 200-day Exponential Moving Averages has narrowed. This means that it may soon form a death cross pattern.
XRP price chart | Source: crypto.news
The last time that the coin formed a cross was in December 2021, when it was trading at $0.8320. After that, the coin plunged by 65% and hit a low of $0.2797.
Therefore, if the XRP price forms a death cross, there is a risk that it may keep going downwards, possibly to the year-to-date low of $1.3766, which is about 43% below the current level.
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