XRP has seen a significant decline, dropping 7.80% to around $2.30 as of February 7, largely due to broader market trends and macroeconomic factors. The fall follows a major rout on February 3, leading to approximately $152.35 million in XRP futures liquidated. The backdrop of a robust job growth forecast for January 2025 has raised concerns among investors, as it reduces the urgency for the Federal Reserve to cut interest rates, keeping borrowing costs high and making riskier assets like XRP less appealing. Despite positive news like ETF filings and developments in the SEC vs. Ripple case, traders remain skeptical and have shifted from 'greed' to 'fear', resulting in XRP's notable decline. Additionally, XRP’s open interest has dropped 55% over three weeks, indicating a loss of speculative momentum. As the price retests a critical support level, the future direction will depend on whether it holds above this boundary or declines further towards the 50-day and 200-day EMA levels, which are critical support zones.

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