Meanwhile, the Average Directional Index stood near 33 on the weekly chart. Readings above 25 generally indicate a relatively strong trend.
However, the Average Directional Index does not determine whether a trend is bullish or bearish. XRP’s declining price structure provides the bearish directional signal.
A confirmed break below $1 could expose lower support levels. The psychological $0.50 area would represent a deeper bearish scenario rather than a confirmed target.
Conversely, a sustained move above $1.5472 could weaken the bearish setup. That level corresponds with the 61.8% Fibonacci retracement area on the chart.
Key XTP Fundamentals Have Weakened
Several important fundamentals suggest that the XRP price may have a strong bearish breakout in the coming days or weeks.
For example, the number of transactions on the XRP Ledger has continued to fall this month. The daily figure dropped to 403k on Saturday, down sharply from the year-to-date high of 2.1 million. This is a sign that its usage continues to deteriorate amid the ongoing crypto winter.
More data shows that the number of active accounts remained in a downward trend, moving from the year-to-date high of over 31k to below 9,000 today. These numbers have contributed to the low XRP burn rate, with fewer than 300 coins incinerated daily.
Meanwhile, demand for XRP ETFs has continued to fall this month. There were no inflows on Friday, with the weekly inflows being $2.25 million. The monthly inflows are just $3.27 million, much lower than the record high of $131 million that was experienced in May this year,
All XRP ETFs have had cumulative inflows of $1.51 billion, bringing total assets to $933 million. Falling inflows are a sign that American retail and institutional investors don’t expect it to rise. The inflows have also slowed, possibly as investors rotate to other assets, especially the stock market, as the AI boom continues.
More data shows that demand for Ripple USD (RLUSD) stablecoin has also waned in the past few months. Its market capitalization has dropped to $1.71 billion, down from the year-to-date high of $1.83 billion. This decline mirrors that of other top stablecoins, including USD Coin (USDC), which has slipped to $72 billion from the all-time high of $80 billion.
The futures open interest has dropped to $2.6 billion from last year’s high of $10.5 billion. This figure means that demand in the perpetual futures market has weakened.
XRP’s technical structure remains weak while price trades near long-term support. Softer network activity and slower investment-product demand add pressure, but neither confirms another breakdown. A sustained loss of $1 would strengthen the bearish case, while a recovery above $1.55 would weaken it.
The post XRP Price Risks Further Drop as Key Fundamentals Weaken appeared first on The Market Periodical.
