XRP Price Falls Below $1 as Emerging Risks Point to More Downside

Further data shows that demand for the Ripple USD stablecoin has continued to wane this month. The stablecoin, which is crucial to Ripple’s growth, has waned recently, with the market capitalization falling to $1.71 billion from the year-to-date high of $1.81 billion. 

XRPScan data shows that the XRP Ledger’s growth has also slowed in the past few months. The number of active accounts, transactions, and fees have dropped. According to DeFi Llama, the total value locked in its ecosystem has dropped to $29 million from a record high of $115 million. Its chain fees dropped to just $48,120 in the first quarter from $1.4 million at its peak in the fourth quarter of 2024. 

XRP Technicals Point to Further Downside

The daily chart shows that the XRP price could be at risk of further downside in the near term. It has been forming a descending triangle pattern and has now moved below the lower side. This pattern normally leads to more downside over time.

The token has also dropped below the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has dropped below 50 and pointed downwards in the past few months.

Therefore, there is a risk that the token will continue falling, potentially to the psychological level of $0.50. A bullish reversal will be confirmed if it moves above the 200-day moving average level of $1.3514.

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