The XRP price has wiped out some of the gains made in November as the cryptocurrency sell-off continued.
Ripple (XRP) retreated to $2.14 on Monday, a 26% decline from its highest level this month, meaning that it has moved into a bear market.
XRP’s drop happened as its social sentiment score and futures open interest continued falling. According to CoinGlass, the futures open interest dropped to $1.89 billion on Monday, down from the year-to-date high of over $4.29 billion.
Ripple’s daily volume has also dropped in the past few weeks as its momentum waned. Its 24-hour volume was over $10 billion, much lower than what it handled a few weeks ago.
Still, XRP price has some important fundamentals that could push it higher in the near term. The most important metric is that many large holders are not selling. According to Santiment, XRP has over 5.75 million holders, higher than the October low of 5.36 million. Similarly, the number of active addresses dropped slightly during this sell-off.
XRP also has more catalysts ahead. CoinMarketCap data shows that the Ripple USD stablecoin’s market cap has risen to over $53 million a week after its launch. Still, CMC warns that its assets in the RLUSD stablecoin have not been verified.
Further, there are rising odds that the Securities and Exchange Commission will approve a spot XRP ETF in 2025. Donald Trump has pledged to be a more crypto-friendly president and has already started to constitute members of the crypto council. A spot ETF would likely create more hype for the coin and demand.
XRP price analysis as a bullish pattern forms
The daily chart shows that the Ripple price is slowly forming a bullish pennant chart pattern. This is a popular continuation sign made up of a vertical flag pole and a triangle pattern, which is now forming.
The lower side of the triangle connects the lowest points on Dec. 10 and 20. The upper side touches the highest swing on Dec. 3 and 17. There are signs that this consolidation will continue for a while.
XRP price has also moved above the 50-day moving average and is at the weak, stop & reverse point of the Murrey Math Lines. Therefore, the coin will likely have a bullish breakout as bulls target the year-to-date high of $2.90.
