Key Points
- XRP fell below $1, with a weekly decline of about 18%
- As Bitcoin and Ethereum decline, short liquidations accelerate.
- ETF Capital outflows and the contraction of stablecoin liquidity suppress demand
XRP has fallen below the psychologically significant $1 mark, with a cumulative decline of about 18% over the past week. As Bitcoin and Ethereum continue to experience broader sell-offs among cryptocurrencies, affected by the withdrawal of institutional funds, leverage liquidations, and tightening market liquidity, XRP has also weakened as a result.
On November 15th, the trading price of this cryptocurrency was around $0.95, and it fell by about 7% within 24 hours, approaching the $0.94 range. This decline occurred at a time when XRP had been making efforts to hold above $1, and at that time, the outflow of funds from ETF for the first time sparked concerns about a weakening demand from institutions in the market.
According to CoinGlass market data, in the past 24 hours, approximately $27 million worth of XRP derivative positions were liquidated, of which about 97% came from long positions.
Why is XRP falling? Bitcoin and Ethereum exacerbate market selling pressure.
The decline of XRP occurred simultaneously with a significant weakening of the broader cryptocurrency market, and not because Ripple released any single negative piece of news.
Bitcoin has fallen to the range of $64,000 to $65,000, continuing its recent downward trend; Ethereum is approaching $1,800, having previously struggled to hold above the $2,000 mark.
The broader decline stems from stronger inflation data in the United States, as well as market expectations that the Federal Reserve may maintain a tighter monetary policy.
Coinbase Institutional reports that the combined supply of USDT, USDC, and DAI has decreased by $11.5 billion within 30 days, which may weaken the buying power available in the crypto market.
Higher interest rate expectations also make speculative investments less attractive compared to interest-bearing assets, further putting pressure on altcoins, including XRP.
XRP ETF Capital outflows and liquidations increase selling pressure
Institutional investment products did not provide much protection during the latest round of declines.
Summary fund flow data shows that the US spot XRP ETF recorded a net outflow of approximately $19.1 million during the trading week from November 9th to 13th.
However, since its launch, the cumulative net inflow has still been approximately 1.79 billion US dollars, indicating that the recent withdrawal of funds only accounts for a small portion of the historical investment scale.
This sale also occurred after 21Shares previously disclosed information related to XRP ETF. The disclosure showed that despite a strong rebound in the third quarter, losses were still incurred.
Meanwhile, the decline in the price of XRP has triggered liquidations on both centralized derivatives platforms and decentralized lending markets.
A previous round of loan liquidations involving 883 loans secured with XRP occurred on Morpho, resulting in the confiscation of 4.18 million cbXRP. This illustrates how a decline in the value of collateral can further lead to selling pressure.
XRP Price forecast: Could $0.90 be the next target?
As XRP falls below $1, the market's focus is shifting to whether buyers can hold the $0.94 to $0.95 range.
If it continues to fall below $0.94, it may further expose the psychological barrier of $0.90; and if there is a deeper market-wide correction, $0.85 could also become a focal point.
On the contrary, a return to $0.98 would provide a preliminary sign of stabilization. However, XRP still needs to regain $1 for there to be a substantial improvement in the current bearish trend.
The latest weak trend also contrasts with the business expansion of the banking sector represented by Ripple; despite the decline in the price of XRP, the latter continues to advance.
