XRP is currently experiencing a decrease in its price, dropping by over 5.5% to $0.59. This decline seems to be part of a broader retracement that traces back to March when the coin reached a peak of $0.74. Since then, the price has fallen by approximately 18.5%, with various factors contributing to this downward trend.

Influence of U.S. Manufacturing Data on XRP Price Movement

The recent decline in XRP's price aligns with a broader market trend where several cryptocurrencies saw sharp drops following a shift in investor sentiment regarding the Federal Reserve's interest rate policies. This shift was prompted by the release of strong U.S. manufacturing data, indicating a potential stabilization in manufacturing activity after a 16-month decline.

This upturn in economic data has led investors to reconsider the number of expected interest rate cuts by the Federal Reserve this year, possibly reducing the total cuts from three to two. As a result, XRP, alongside other cryptocurrencies, experienced a price decline.

Distribution Patterns of XRP Holders

Additionally, there has been a drop in the number of addresses holding significant amounts of XRP, with both large holders ("whales") and smaller investors ("fishes") either selling or redistributing their funds. The actions of these major holders could influence market perception and diminish trader interest in XRP.

Dominance Index and Legal Challenges Impacting XRP Performance

In 2024, XRP has underperformed compared to other major cryptocurrencies, with a negative year-to-date return despite an overall market surge. XRP dominance index has declined as capital has flowed out of XRP and into other cryptocurrencies. Legal challenges, such as the SEC's lawsuit against Ripple, have also affected XRP's market performance.

Technical Analysis and Future Price Predictions

From a technical viewpoint, XRP's price movement is within an ascending triangle pattern, suggesting possible future targets. The coin's price is expected to hit around $0.52 by mid-April if the current downward trend continues. Conversely, a breakout above the upper trendline could push the price towards $0.74, the local peak from March 11.

This article serves as informative analysis and does not provide investment advice. It is recommended for readers to conduct their own research and assessment before making any investment decisions.