XRP price has erased some of the gains made in November as the cryptocurrency sell-off continued.
Ripple (XRP) retreated to $2.14 on Monday, a 26% drop from its highest level this month, meaning it has entered a bear market.
XRP’s drop came as its social sentiment score and futures open interest continued to decline. According to CoinGlass, futures open interest fell to $1.89 billion on Monday, below the year-to-date high of over $4.29 billion.
Ripple’s daily volume also fell in recent weeks as its momentum waned. Its 24-hour volume exceeded $10 billion, much less than what it managed a few weeks ago.
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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 more than 5.75 million holders, up from October’s low of 5.36 million. Similarly, the number of active addresses fell slightly during this sell-off.
Number of XRP holders and active addresses | Source: Sentiment
XRP also has more catalysts ahead. Data from CoinMarketCap shows that the market capitalization of the Ripple USD stablecoin 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.
Additionally, there are increasing chances that the Securities and Exchange Commission will approve a spot A spot ETF would likely generate more enthusiasm for the currency and demand.
XRP price analysis as a bullish pattern forms
XRP Chart | Source: crypto.noticias
The daily chart shows that Ripple price is slowly forming a bullish pennant chart pattern. This is a popular continuation sign composed of a vertical flagpole and a triangle pattern, which is now forming.
The lower side of the triangle connects the lowest points on December 10 and 20. The upper side touches the swing higher on December 3 and 17. There are signs that this consolidation will continue for some time.
XRP price has also moved above the 50-day moving average and is at the weak, stop and retracement point of the Murrey math lines. Therefore, the coin is likely to have a bullish breakout as bulls target the year-to-date high of $2.90.
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