The XRP price has seen a significant decline in recent days, wiping out some of the gains it had made in November and moving into what is considered a bear market. This drop in price can be attributed to a decrease in social sentiment score, futures open interest, and daily volume. Despite these setbacks, there are some important fundamentals that could potentially push XRP higher in the near future.
One key metric to consider is the number of large holders who are not selling their XRP. According to Santiment, XRP currently has over 5.75 million holders, which is higher than the October low of 5.36 million. Additionally, the number of active addresses, while slightly decreasing during the recent sell-off, is still showing some stability.
Moreover, there are potential catalysts on the horizon for XRP. The Ripple USD stablecoin has seen a rise in market cap to over $53 million just a week after its launch, although this data has not been verified by CoinMarketCap. Furthermore, there are increasing chances that the Securities and Exchange Commission could approve a spot XRP ETF by 2025, which would likely generate more hype and demand for the coin.
Technical analysis of the XRP price shows that it is forming a bullish pennant chart pattern on the daily chart. This pattern consists of a vertical flag pole and a triangle pattern, indicating a potential continuation of an upward trend. The current consolidation phase is expected to continue for a while, with the coin above the 50-day moving average and at the weak stop and reverse point of the Murrey Math Lines.
In conclusion, while the XRP price has experienced a significant drop recently, there are still positive indicators that suggest a potential for a bullish breakout in the near future. With a strong base of large holders and upcoming catalysts, such as the potential approval of a spot XRP ETF, there is optimism in the market for a potential recovery and rally in the XRP price. Traders and investors will be keeping a close eye on these developments in the coming weeks.
