The XRP price has sharply declined, dropping below the $2 mark for the first time in four weeks. This sudden fall reflects broader turbulence across the cryptocurrency market, which has shed over $700 billion in value within just seven days. A wave of panic selling has swept through investor circles, triggering massive liquidations—nearly $1 billion in the last 24 hours alone—leaving traders cautious and markets volatile.
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XRP’s Recent Price Performance
Over the past week, XRP has lost approximately 26% of its value, currently trading just under $2. Despite this steep drop, trading volume has seen a modest 12% increase, reaching $7.63 billion. This uptick in volume during a downturn suggests heightened interest amid uncertainty, possibly from short-term traders capitalizing on volatility.
In the last 24 hours, XRP’s price has oscillated between $2.25 and $1.99, indicating unstable market confidence. While some investors view this as a potential buying opportunity, others remain wary of further downside risks.
Declining Network Activity Adds Pressure
One of the key factors contributing to XRP’s weakening price is a notable decline in network activity. According to crypto analyst Ali Martinez, the number of active XRP addresses has plummeted by 50% since December—from 202,250 down to 101,169.
This significant reduction in user engagement raises concerns about declining real-world usage and reduced transactional demand. Lower on-chain activity often precedes or reinforces bearish price trends, as it signals waning interest from both retail and institutional participants.
When fewer users are transacting or holding a cryptocurrency, liquidity tightens and price resilience diminishes—making assets like XRP more vulnerable to sharp corrections during broader market sell-offs.
Key Technical Levels to Monitor
XRP experienced an impressive rally between November and mid-January, surging nearly 500%. However, since then, it has been range-bound between $2 and $2.50, struggling to break higher.
For bullish momentum to return, XRP must reclaim the 50-day simple moving average (SMA), currently sitting at $2.72. This level acts as a critical resistance zone; a sustained move above it could trigger renewed buying pressure and signal a reversal of recent losses.
On the downside, if selling continues, the next support levels to watch are:
- $1.72 – A psychological and technical support zone
- $1.50 – Coinciding with the 200-day SMA, this level represents a long-term floor that could attract strong buyer interest
Oversold Conditions Signal Potential Rebound
Despite the bearish outlook, there are early signs of potential stabilization. The Relative Strength Index (RSI) for XRP has recently entered oversold territory—a condition that often precedes short-term rebounds.
An oversold RSI doesn’t guarantee an immediate recovery, but it does suggest that downward momentum may be exhausting itself. If buying pressure returns—especially from large holders or institutional players—it could spark a corrective rally.
Historically, oversold conditions in major cryptocurrencies have preceded bounces of 15–30%, particularly when supported by positive news or improved macroeconomic sentiment.
Broader Crypto Market Under Pressure
XRP’s struggles are not isolated. The entire digital asset ecosystem is facing intense pressure:
- Bitcoin has dipped below $80,000
- Ethereum has hit a one-year low
- Total market-wide liquidations reached $952 million in 24 hours
According to Coinglass data:
- $474 million in Bitcoin long positions were liquidated
- $216 million in Ethereum longs were wiped out
- $25.28 million came from XRP traders
These figures highlight extreme volatility and leveraged exposure across exchanges. The largest single liquidation occurred on HTX, where a $38 million BTC-USDT long position was closed out abruptly.
Such cascading liquidations amplify downward moves, creating self-reinforcing sell-offs that can push prices far beyond fundamental levels—especially in low-liquidity periods.
Can XRP Bounce Back?
While current conditions are undeniably bearish, history shows that cryptocurrencies often recover after sharp corrections—especially when underlying technology and adoption remain strong.
XRP continues to be used in cross-border payment solutions by financial institutions globally. RippleNet’s partnerships with banks and payment providers provide real utility that many speculative altcoins lack. This fundamental strength may serve as a foundation for future recovery once market sentiment stabilizes.
Additionally, regulatory clarity—particularly around Ripple’s ongoing legal battle with the SEC—could act as a major catalyst. A favorable ruling or settlement might reignite investor confidence and drive institutional re-entry.
Frequently Asked Questions (FAQ)
Why is XRP going down today?
XRP dropped below $2 due to strong selling pressure, declining network activity (with active addresses down 50%), and widespread liquidations across the crypto market exceeding $950 million in 24 hours.
How much XRP was liquidated in the last 24 hours?
Approximately **$25.28 million** worth of XRP positions were liquidated, part of a larger $952 million market-wide liquidation event affecting Bitcoin, Ethereum, and other major assets.
Is XRP oversold right now?
Yes, XRP’s Relative Strength Index (RSI) has entered oversold territory, suggesting that short-term downward momentum may be exhausting itself and a technical rebound could be possible if buyers step in.
What are the key support levels for XRP?
The primary support levels to watch are $1.72** and **$1.50, with the latter aligning with the 200-day simple moving average—a historically significant floor.
Can XRP recover from this drop?
Recovery is possible if market sentiment improves, network activity rebounds, or positive regulatory developments occur. Technical indicators suggest a bounce could happen if $1.70 holds as support.
What price must XRP reach to signal bullish momentum?
To resume an uptrend, XRP needs to reclaim the $2.72 level—the 50-day SMA—which would indicate renewed buyer control and potential breakout momentum.
With volatility expected to persist in the near term, traders should focus on risk management, monitor key technical levels, and stay informed about macroeconomic triggers and regulatory updates. While the current dip presents challenges, it also opens strategic opportunities for those prepared to act decisively when conditions shift.