XRP’s (XRP-USD) latest drop isn’t coming out of nowhere.The entire crypto market has taken a step back this week, wiping out over $1 trillion in total market value. Bitcoin slipped below the $100,000 mark, while major altcoins like Ethereum and XRP followed lower.
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Traders point to renewed fears that the Federal Reserve could keep interest rates higher for longer, denting the risk appetite that fuels crypto rallies. The odds of a December rate cut have fallen sharply. That drop in expectations has put pressure on speculative assets, leaving XRP struggling to hold its recent trading range between $2.20 and $2.70.
XRP Faces Falling Retail Demand and Weak Technicals
Beyond the macro headwinds, XRP’s own market data paints a fragile picture. Futures open interest has dropped sharply to around $4.3 billion, roughly half of what it was during October’s highs. Analysts say that signals weaker retail participation and fading speculative interest.
Technically, XRP has broken below both its 20- and 50-day moving averages, which is a sign short-term momentum is turning negative. If the token fails to hold support near $2.22, chart analysts warn it could slide toward $1.77, which is the next major zone of demand.
ETF Hype Fails to Lift Sentiment
Even with optimism around potential XRP ETF approvals, traders haven’t shown much appetite to buy the dip. Reports note that liquidity is building between $2.60 and $3.50, but without stronger buying pressure, reclaiming that range may be difficult.
In short, XRP’s recent pullback has more to do with lackluster momentum than fundamentals. Despite Ripple’s expanding institutional partnerships and custody acquisitions, traders are still viewing XRP as a high-beta altcoin that moves with broader market cycles.
What Could Turn Things Around
For XRP to regain its footing, analysts say it needs a clearer set of catalysts. A softer macro backdrop, like renewed rate-cut expectations or a rebound in Bitcoin, could help sentiment. On the technical side, a move above $2.50 would be the first sign of a short-term reversal.
Broader retail demand will also need to return. Data shows short-side positions heavily outweigh longs, which means any quick rebound could trigger a short squeeze toward $2.70. But without stronger inflows or a new narrative, XRP could stay range-bound for now.
At the time of writing, XRP is sitting at $2.27.
