What Is The Reason For The Decline In Xrp Price Today?

The XRP price is experiencing a decline due to negative technical indicators and the disappointing scenario following the ETF approval.

In recent weeks, XRP has been in a downward trend, and today's situation remains unchanged. The asset has dropped to around $0.50 with a approximately 4% decline today.

This decline is attributed to both technical indicators and market sensitivity. Upon examining XRP's price outlook and investor trends, it can be observed that the price is part of a broader downward trend that began with testing a declining trend line over the past few months.

XRP's last trend line test occurred on December 28th, and since then, the price has experienced a 25% decline.

As of January 23rd, the asset is moving towards a few months' trend line support; this support level has historically indicated the beginning of a significant recovery.

XRP is currently below the key moving average, and the price trend is downward due to the potential oversold conditions indicated by the RSI. This situation may attract the attention of buyers searching for opportunities at current levels.

XRP ETF products are not currently on the agenda. Today's price decline followed rumors about a potential XRP ETF in addition to technical indicators. Markets had expectations that BlackRock, the world's largest asset manager, would launch a spot XRP ETF. However, these expectations diminished after BlackRock announced on January 18th that they did not have such plans, temporarily shelving hopes for institutional investment in XRP.

Following the announcement, XRP experienced a decline of approximately 13%.

Ripple's dispute with the SEC also emerged as another significant factor affecting investor sensitivity. The SEC's request for financial statements from Ripple and the lawsuit scheduled for April 2024 further increased uncertainty around XRP. This situation likely contributed to a decrease in investor enthusiasm, possibly forming the reason behind the recent sales.

Additionally, today's decline in XRP coincided with a period in which whales (large holders) reduced their XRP assets.

In January, the number of XRP held by addresses with holdings ranging from 100 million to 1 billion tokens visibly decreased. This suggests that these addresses, which vary in holdings, have been selling XRP, indicating a reduction in whale holdings.

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