The XRP price remained in a consolidation phase this week as spot market volume declined and exchange-traded funds suffered their largest outflows ever.
Summary
- The XRP price formed a bearish pennant pattern on the eight-hour chart.
- This pattern points to more downsides in the coming days.
- Spot XRP ETFs saw $40 million in outflows this week.
The Ripple (XRP) token was trading at $1.9172, where it has remained for the past few days. This price remains 20% below the year-to-date high of $2.41.
Data from SoSoValue shows that spot XRP ETFs have had their worst week since their launch last November.
These funds saw outflows of more than $40 million this week, bringing cumulative inflows since their inception to $1.23 billion. It was the first time these funds experienced weekly outflows, with 21Shares’ TOXR hit hardest.
The XRP price also faltered as third-party data shows that the Ripple USD (RLUSD) stablecoin is no longer growing as it has in the past. The stablecoin has a market capitalization of $1.3 billion, a range it has remained at in recent months.
On the plus side, Binance decided to list the RLUSD stablecoin on the exchange this week, making it available to millions of customers. Also, the stablecoin is likely to benefit from the upcoming expansion to other chains via a Wormhole integration.
XRP’s weakness mirrors that of other cryptocurrencies, which have remained on edge in recent weeks. Bitcoin’s price has fallen to $89,000, while Ethereum has fallen below $3,000.
One reason for the weakness is that investors have moved to the better-performing stock market, with the Dow Jones and the S&P 500 indexes are hovering near all-time highs. Precious metals like gold and silver have all risen to record highs this year.
Technical analysis of XRP prices
The eight-hour chart shows that the XRP price has retreated in recent weeks, from a high of $2.4145 to the current $1.9175.
A closer look shows that the token has remained below the 50-period and 50-period exponential moving average, a sign that bears are now in control.
The token has also formed a bearish pennant pattern, which consists of a vertical line and a symmetrical triangle. This triangle pattern is nearing its confluence, which will lead to a bearish breakdown in the coming weeks.
Such a decline will likely send the price down to the next major support level at $1.7712, which was the December 19 low. This target is approximately 7.65% below current levels.
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