The price of XRP declined sharply on Monday. The asset fell below 2.00 dollars, reaching its lowest level since November 23. Since the peak earlier this year, the value of XRP has now fallen by more than 45%.

Pressure on XRP due to uncertainty and liquidations

The recent decline does not come entirely as a surprise. Confidence in the broader crypto market has been decreasing in recent days. The Crypto Fear and Greed Index, which measures overall market sentiment, currently sits at 20. This indicates a strongly negative outlook among investors.

That uncertainty is also reflected in the liquidations. On Monday alone, more than 16 million dollars in XRP long positions were liquidated, according to data from CoinGlass. For comparison: the day before, this was still 2.27 million dollars. XRP was not the only asset under pressure; liquidations in Bitcoin, Ethereum, and Zcash also increased significantly.

Technical outlook remains weak

From a technical perspective, XRP is also showing weakness. The price has been moving in a downward trend for several weeks and is trading below both the 50-day and 200-day moving averages. In early November, a so-called death cross appeared, where the shorter-term average drops below the longer-term one — often seen as a bearish signal.

In addition, the chart has been forming lower highs and lower lows for some time. Attempts at recovery are frequently used by traders to take profits or reduce exposure.

Positive developments

Despite the current sentiment, there are still reasons for optimism. XRP continues to attract interest from U.S. investors. More than 666 million dollars has flowed into XRP through exchange-traded funds (ETFs). These funds now manage approximately 687 million dollars in XRP, representing a little over 0.5% of the total market capitalization.

Activity on the XRP Ledger has also grown. Ripple USD (RLUSD), the network‘s stablecoin, saw usage increase by 90% over the past month. Including the assets available through Ethereum, RLUSD now represents a value of around 1.3 billion dollars.

Finally, Ripple Labs recently raised 500 million dollars from investors including Citadel and Fortress, valuing the company at 40 billion dollars. This confirms Ripple‘s position as one of the major players in the crypto industry.

Disclaimer: This is not financial advice. Always consider conducting your own research or consulting a professional before making investment decisions.