XRP price retreated for the second consecutive day, reaching a low of $2.40, down 35% from its highest point in July of this year.
Summary
- XRP price has pulled back in the past few months.
- The token’s burn rate has continued falling.
- Ripple price has formed an inverse head-and-shoulders pattern.
Ripple (XRP) token has crashed because of the ongoing crypto market weakness and the fact that investors are staying on the sidelines ahead of the US inflation data.
It has also dropped because of its slow ecosystem growth as evidenced by its decentralized finance network. Its total value locked in the DeFi industry dropped to $86 million, down from the year-to-date high of $102 million.
XRP Ledger’s DEX volume has also plunged to $6.1 million, down from this month’s high of $12 million. Its stablecoin market capitalization has dropped to $184 million, down from the year-to-date high of $186 million.
The slowing XRP Ledger ecosystem growth has impacted its burn rate. Data shows that the number of transactions in the network has dropped to 1.123 million, from 2.5 million in July.
The XRP burned as fees has been on a downward trend. It is averaging less than 1,000 XRP tokens a day, down from over 4,500 a few months ago.
Cumulatively, the number of XRP burned has reached 14.2 million, which is equivalent to $32 million at the current price. This is a tiny amount for a token with a market cap of over $147 billion.
On the positive side, the recently launched REX-Osprey XRP ETF (XXRP) ETF has crossed the $100 million milestone in terms of asets under management. This is a sign that the upcoming XRP ETFs will attract demand from American investors.
XRP price technical analysis
The two-hour chart shows that the XRP price has remained under pressure in the past few days. It was trading at $2.40, down from this week’s high of $2.550.
The token has formed an inverse head-and-shoulders pattern and is now in the process of forming the right shoulder. It has moved inside the Ichimoku Cloud indicator.
Therefore, the coin will likely rebound and possibly retest the key resistance at $2.550. A move above that level will point to more gains, possibly to the key resistance at $2.6415, its highest point on Oct. 14.
