TLDR
- This drop below $2.10 has made XRP the worst performer in the top 10 altcoins, with a 14.5% dive over the week.
- The price decline stunned many because of the positive outcome from Ripple's battle with the SEC.
- Huge sell-offs by whales, to the tune of over 1.12 billion XRP, equivalent to a hefty $2.3 billion, have added to the downward spiral.
- XRP is edging closer to the $2.00 support level, last seen on May 11.
- Technical charts suggest a bearish mood, with obstacles at $2.15 and $2.20 as it attempts to rebound.
Amid positive news for Ripple, XRP is still facing intense downward pressure, trading around $2.09 after dipping below $2.10, ranking it the weakest among its peers in the past week.
The price drop was unexpected to many, coming just after Ripple declared victory over its longstanding legal tussle with the SEC. For a brief moment on March 19, this news pushed XRP's value up to $2.60.
Rather than boosting confidence, the good news triggered a 'sell-the-news' reaction, with XRP shedding a fifth of its value since reaching its high in March, unaffected even by last week's lawsuit resolution confirmation.
XRP’s weekly plunge of 14.5% is more striking when compared to other cryptocurrencies, as Bitcoin only dipped by 5.5%, Ethereum by 11.6%, and Solana by 9% in the same timeframe.
The entire crypto space is feeling the pinch of the broader market downturn. Bitcoin has slumped to about $82,000; Ethereum is now at $1,800, and Solana trades close to $125.
Market Analysis
XRP is currently grappling with various resistance points. A bearish line has formed at $2.148 on hourly charts. The price remains below $2.150 and the 100-hour Simple Moving Average.
The first major hurdle is around $2.180, with the next challenging barrier at $2.20. Surpassing these could propel XRP to climb to $2.250 or even reach $2.30.
If XRP slips beneath the $2.080 mark, the subsequent significant support is at $2.050, potentially heralding a descent to the crucial psychological $2.00 marker.
The psychological $2.00 level is a critical threshold, untouched since May 11. Falling through it could awaken aggressive sell-offs aiming for $1.880.
Bearish indicators are evident. The MACD for the XRP/USD pair is amplifying in the bearish territory, while the RSI has dropped below 50.
One factor contributing to XRP's descent is the notable activity of large investors. These whales had previously boosted XRP as prices soared from $0.60 to $3.40 post-U.S. elections.
But now, these same big holders have shifted gears, selling off a massive 1.12 billion XRP in just a two-day span. This sell-off, valued over $2.3 billion, equates to nearly 2% of XRP’s total market valuation. XRP Public interest in XRP has also waned significantly. Google Trends data signals that searches for XRP have reached 2025 lows, with the public largely ignoring Ripple's legal triumph.
Retail interest in XRP The cryptocurrency sector is also under pressure from worldwide trade uncertainties, affecting all risk assets. Earlier this week, Japan's Nikkei index fell by over 4%.
XRP sits precariously at a pivotal point. It must maintain the $2.00 support level to fend off a more profound correction. Breaching this support might trigger intensified selling.
Looking ahead, XRP enthusiasts anticipate a potential catalyst this year. Approval for an XRP ETF could reignite market enthusiasm.
In the interim, traders will keep a keen eye on pivotal technical levels. The $2.15 and $2.20 resistance zones are key for a bullish shift, while the $2.00 support is crucial.
Maisie is a seasoned journalist specializing in Crypto & Financial news, contributing to Moneycheck.com, level-up-casino-app.com, and Computing.net, and holds the role of Editor-in-Chief at Blockfresh.com.
