XRP price retreated sharply on Monday, reaching a low of $1.8500, its lowest level since January 1, and a 23% decrease from its highest point this year. This downturn mirrored the performance of Bitcoin and other cryptocurrencies, including prominent assets like Solana, Dogecoin, and Ethereum.
The decline in XRP coincided with a broader market sentiment shift, as indicated by the retreat of American stock index futures. The Dow Jones fell by 0.70%, the Nasdaq 100 by 1.40%, and the S&P 500 by 1%. European indices such as the DAX and CAC 40 also experienced drops, while gold saw an increase, signaling a move towards risk-off investments. This market behavior followed threats of new tariffs by Donald Trump on certain NATO allies.
Key Catalysts on the Horizon for XRP
A significant catalyst for XRP this week is the participation of Brad Garlinghouse, Ripple Labs’ Chief Executive, at the World Economic Forum event in Davos, Switzerland. Garlinghouse is scheduled to deliver a statement and participate in a panel discussion focused on the future of tokenization. This technology continues to experience substantial growth.
The panel will feature other notable figures, including Bill Winters, CEO of Standard Chartered; Brian Armstrong of Coinbase; Valerie Urbain of Euroclear; and Francois Villeroy de Galhau, head of the French Central Bank. During this session, Garlinghouse is expected to elaborate on Ripple Labs' strategic positioning within the burgeoning tokenization industry.
Data indicates that the XRP Ledger currently holds over $396 million in tokenized assets and $387 million in stablecoin assets. The RWA transfer volume on the ledger has seen a 17% increase in the last 30 days, reaching $76 million, while its stablecoin transfer volume exceeded $780 million.
Garlinghouse is also likely to address the current regulatory landscape in the United States. The CLARITY Act, a piece of legislation relevant to the crypto industry, stalled in the Senate Banking Committee after Coinbase withdrew its support.
Further potential catalysts for Ripple price this week include the upcoming Supreme Court ruling on Donald Trump’s tariffs, scheduled for Tuesday. A decision to end these tariffs could have a bullish impact on the crypto market, potentially leading to lower inflation in the US.
XRP Price Technical Analysis
The daily timeframe chart reveals that the XRP price has experienced a strong downward trend over the past few days. Following a recovery that peaked at $2.4 on January 6, the price began its retreat.
XRP price has consistently remained below both the 50-day moving average and the Supertrend indicator, suggesting that bearish sentiment has dominated the market.
Currently, XRP has reached the ultimate support level indicated by the Murrey Math Lines tool, a zone where assets historically tend to rebound. Additionally, the formation of a hammer candlestick pattern, a recognized reversal signal, has been observed.
Based on these technical indicators, the coin is likely to experience a rebound, potentially before or after Garlinghouse's participation in the Davos panel. If a rebound occurs, XRP may target the key resistance level at $2.25.