XRP Faces Pressure Amid Weak Demand and Rising Supply
Despite the SEC dropping its appeal against Ripple, XRP remains under pressure, with stagnant prices and low on-chain activity.
🔻 Key Factors Driving XRP’s Decline:
• Weak demand: If buying pressure doesn’t increase, XRP’s growing supply could push prices lower.
• Technical risk: A confirmed Head and Shoulders pattern could send XRP below $1.35.
• Macroeconomic impact: Trump’s tariff threats and rising prices contributed to a 7% drop in XRP on Friday.
📉 On-Chain Activity and Market Trends:
• XRP has dropped 35% from its January peak of $3.40, despite surging 500% in late 2024.
• SEC’s withdrawal of its case against Ripple had little impact, as investors had already priced it in.
• Whale investors are selling less, with exchange reserves on Binance and Upbit remaining flat.
• XRP’s derivatives open interest has risen from 1.35 billion to 1.75 billion XRP monthly.
📊 Supply-Side Pressure & Future Outlook:
• Ripple releases 1 billion XRP weekly from escrow, gradually increasing supply.
• Circulating supply grew from 54 billion to 58 billion XRP in a year.
• Without increased demand, XRP could face further downside risks.
Will XRP recover, or is more downside ahead? 🚨
