- XRP’s price decline reflects broader market losses amid tighter monetary policy.
- Analysts see XRP’s double-bottom pattern as a potential bullish signal.
- Ripple’s RLUSD stablecoin could unlock liquidity and boost XRP’s recovery.
The cryptocurrency market remains vulnerable to high volatility with XRP remaining in the middle of the action. Over the past two days, XRP has sharply declined down to $1.99, and the 24-hour trading volume stood at $25.67 billion.
This marks a 17.28% decline within 24 hours, as broader market conditions weigh heavily on digital assets. Despite the downturn, analysts offer varying perspectives on XRP’s trajectory, ranging from technical analysis insights to long-term bullish predictions.
XRP’s Double Bottom Potential and Macro Range Patterns
Technical analyst EGRAG CRYPTO highlights that XRP’s current price action is testing the December 10 low of $1.90. This retest could lead to a double-bottom formation, a potentially bullish signal.
However, this movement is also part of a broader macro range, mimicking past price behavior between $0.50 and $1.00. Now, this pattern plays out between $2.00 and $2.90, indicating consistent market dynamics at higher levels.
Lower time frames reveal that losing the $1.90 level is not catastrophic, as EGRAG CRYPTO emphasizes its normalcy in market fluctuations. Analyst JackTheRippler also noted significant whale activity, with over 110 million XRP purchased within the last 24 hours, signaling continued institutional interest.
Broader Market Sentiment and Regulatory Influences
XRP’s recent struggles align with the Federal Reserve’s hawkish stance on monetary policy. The Federal Open Market Committee (FOMC) revealed plans for fewer interest rate cuts in 2025, down from four to two, dampening liquidity prospects for risk markets like cryptocurrency.
Consequently, XRP’s price decline mirrors broader market losses triggered by reduced quantitative easing measures. However, analyst Javon Marks suggests that if XRP performs similarly to previous cycles, prices could surge by 6,800%, potentially reaching $168.
Ripple’s Innovations and Potential Catalysts
Ripple’s recent launch of RLUSD, a stablecoin designed to enhance liquidity and DeFi applications, offers a glimmer of hope for XRP. Additionally, favorable regulatory developments under the incoming Trump administration may further strengthen the asset’s outlook.