The cryptocurrency market has seen over $613 million liquidated in just 24 hours, with XRP among the hardest hit. Ripple’s native token has dropped 6.23% in a day, falling below the crucial $3 mark, intensifying bearish sentiment among traders.
Key Market Highlights
- XRP Price Performance
- Daily Decline: XRP dropped 6.23%, trading near $2.80 after losing a key support level at $3.
- Weekly Drop: XRP is down 10%, signaling a continuation of bearish momentum.
- Trading Volume: XRP trading surged to $6.28 billion, a 102.63% increase, driven by heavy sell-offs.
- Bitcoin’s Struggles
Bitcoin’s inability to sustain levels above $100,000 has compounded bearish market sentiment, pressuring altcoins like XRP. - Triangle Pattern Breakdown
XRP’s previous stability within a triangle pattern, observed since December 2024, has been disrupted. The breach of the $3 support level raises the likelihood of further declines unless buyers intervene.
Technical Analysis of XRP
- MACD (Moving Average Convergence Divergence)
- Increasing red histograms confirm that selling pressure is dominating buying activity.
- MACD averages show a bearish convergence, further amplifying downside risks.
- SMA (Simple Moving Average)
- The SMA indicator continues to act as resistance, hindering any significant upward movement.
- A downward trajectory on the daily chart points to sustained bearish momentum.
- Key Support and Resistance Levels
- Support: Immediate support lies at $2.75, with a critical secondary level at $2.50 if bearish sentiment persists.
- Resistance: To recover, XRP must break back above $3 and target the $3.50 resistance.
Outlook: Can XRP Recover?
- Bullish Scenario: Buyers must reclaim control and drive XRP above $3, potentially targeting $3.50 with sustained momentum.
- Bearish Scenario: If selling pressure persists, XRP risks breaking the $2.75 support and could test the $2.50 level, marking further declines.
Broader market conditions will play a pivotal role, with Bitcoin’s performance and macroeconomic factors influencing sentiment. Traders are advised to watch XRP’s price action closely and remain cautious in the current volatile environment.
