XRP Crash Incoming? Price Fails to Hold $2.20 Level
Amid continued uncertainty in the market, Ripple Labs’ native token XRP is set to see a significant price drop after forming a bearish price move. With the exception of XRP, the entire cryptocurrency market appears to be struggling to gain momentum and is facing significant price drops.
XRP Current Price Momentum
At press time, XRP was trading near $2.153, with the price down more than 6.8% in the past 24 hours. Its trading volume increased by 7% during the same period, reflecting increased participation from traders and investors and hinting at concerns about potential price declines.
Why is XRP price falling?
However, the underlying reason behind the XRP price drop is reportedly the imminent unlocking of 1 billion coins Coin Encyclopediaand current market sentiment.
Open interest decreases
Additionally, traders appear hesitant to open new positions, possibly due to the large market volatility. according to coin glass The data shows that XRP’s open interest fell by 31%, suggesting that traders’ positions have been liquidated in the past 24 hours.
Traders liquidate long positions
According to on-chain analytics company Coinglass, the price drop has liquidated XRP long positions worth $6.84 million, bringing the total liquidation total to $7.68 million.
XRP Technical Analysis and Upcoming Levels
Amid this bearish outlook, XRP failed to hold the key support level at $2.20. Prices have reached this level four times since December 2024, with upward momentum each time. However, XRP has now failed to sustain this level and appears to be falling towards the next support area.
However, there is still a chance for XRP to slow its price decline. Based on recent price action and historical momentum, if the altcoin closes below the $2.15 level, there is a high chance of a 14% decline to reach the $1.88 mark in the near future.
The bearish thesis for XRP will only hold true if the daily candle closes below the $2.15 mark, otherwise, it may become invalid.
