MARKET 😴😴😴😴
👎👎👎As of May 17, 2025, XRP is experiencing a downward trend, currently trading at $2.32, reflecting a 0.9% decline over the past 24 hours. Several factors contribute to this decline:
🧾 Key Reasons for XRP's Price Decline
Regulatory Uncertainty: A U.S. judge recently rejected Ripple's proposed $50 million settlement with the SEC, increasing the potential fine to $125 million. This development has led to significant market reactions, including a $160 million withdrawal in open interest from XRP derivatives markets, indicating reduced investor confidence.
Profit-Taking: Over the past week, more than 17 billion XRP, valued at approximately $40.2 billion, have been moved to exchanges. This substantial transfer suggests that investors are capitalizing on previous gains, exerting downward pressure on the price.
Declining Network Activity: The number of daily active addresses on the XRP Ledger has decreased to 21,000, a significant drop from 108,000 in December 2024. This decline in user engagement often correlates with reduced demand and liquidity.
ETF Approval Delays: Investor sentiment has been dampened by the SEC's postponement of its decision on Franklin Templeton's proposed XRP ETF, now expected by June 17. Delays in ETF approvals can lead to uncertainty and reduced investor enthusiasm.
Technical Indicators: XRP has broken below key support levels, with technical analyses indicating potential further declines to $2.20 or even $2.00 if current trends persist.
📉 Market Outlook
While XRP faces short-term challenges, upcoming events such as the launch of XRP futures ETFs on May 19 may influence future price movements. Investors should monitor these developments closely.