$64,679.17
+4.59%
$3,092.53
+2.67%
$80.86
-1.26%
$29.61
+4.69%
$117.89
+1.79%
$0.00
-13.91%
$26.04
+1.44%
$0.15
+3.59%
$22.55
+6.63%
$0.00
+2.25%

Why is XRP price down today?


XRP (XRP) has been experiencing a downward trend in recent weeks, and Jan. 23 looks no different. On the day, the cryptocurrency dropped over 4% to $0.50. The reasons for this decline are both technical in nature and influenced by market sentiment.

XRP price technicals and investor behavior

From a technical perspective, XRP’s ongoing decline is part of a broader downtrend that typically starts when the price tests a multi-month descending trendline resistance, as shown below.

XRP/USD daily price chart. Source: TradingView

XRP’s most recent retest of the trendline came on Dec. 28; its price has fallen by about 25% since.

As of Jan. 23, this cryptocurrency is navigating another crucial technical threshold — a multi-month ascending trendline support. This particular support level has historically marked the onset of more extensive recoveries in the past months.

XRP shows bearish momentum, with the price trading below key moving averages and the RSI suggesting potentially oversold conditions. This could further attract buyers looking for a bargain at. current levels.

No spot XRP ETF product for now 

In addition to technical factors, XRP’s price decline today follows the buzz around the potential launch of a spot XRP exchange-traded fund in the U.S.

As of late, the market was hoping that BlackRock, the world’s largest asset manager, would launch a spot XRP ETF.

These expectations dwindled on Jan. 18, when the firm reportedly clarified that it had no plans to launch such an investment product, dashing hopes for increased exposure and institutional investment for XRP.

XRP/USD daily price chart. Source: TradingView

XRP price has dropped by over 13% since the clarification.

Regulatory challenges

Further impacting investor sentiment, Ripple, the company behind XRP, is embroiled in ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC).

The SEC’s demand for Ripple to produce financial statements and a lawsuit scheduled for April 2024 exacerbates the air of regulatory uncertainty surrounding XRP. This has likely dampened investor enthusiasm and could be partially responsible for the recent sell-off.

XRP’s supply among whales drop 

XRPs decline today and January so far coincides with a decline in the supply held by its richest investors.

Related: XRP price falls near critical support level as Bitcoin and crypto market correct

In January, there was a notable decrease in the XRP supply held by addresses with balances ranging from 100 million to 1 billion tokens (green). This reduction aligns with a rise in the supply held by investors who possess between 10 million and 100 million tokens (black).

XRP supply distribution. Source: Santiment

This trend suggests that holders within the 100-million-to-1-billion token balance group have actively sold or redistributed their XRP holdings.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.