Amid persistent market volatility, XRP (Ripple Labs' native token) shows signs of a significant downturn after failing to sustain the critical $2.20 support level. The broader cryptocurrency market also struggles to regain bullish momentum, with many assets facing downward pressure.
Current XRP Price Trends
- Price: Trading at $2.153 (down 6.8% in 24 hours).
- Volume: Increased by 7%, indicating heightened trader activity amid growing bearish sentiment.
Key Factors Driving the Decline
- Token Unlock Event: Reports suggest 1 billion XRP tokens will soon enter circulation, potentially increasing selling pressure.
- Market Sentiment: Prevailing uncertainty discourages bullish positions.
- Open Interest Drop: 31% decline in open interest (per Coinglass), signaling reduced trader confidence and position liquidations.
- Long Liquidations: $6.84 million in long positions liquidated within 24 hours.
Technical Analysis: Critical Levels to Watch
Support Breakdown
- XRP repeatedly tested $2.20 in early December 2024 but now breaches this level, targeting lower supports.
- Next key support: $1.88** (14% drop potential if daily candle closes below **$2.15).
Bearish Confirmation
- A daily close under $2.15 validates further declines.
- Reclaiming $2.20 could invalidate the downtrend.
FAQ: XRP Price Decline
Q: Why is XRP’s price falling?
A: Factors include impending token unlocks, weak market sentiment, and technical breakdowns.
Q: What’s the next support level for XRP?
A: $1.88** if the price fails to hold **$2.15.
Q: How does open interest affect XRP’s price?
A: Declining open interest suggests reduced trader participation, often preceding price drops.
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The analysis underscores cautious trading—monitor key levels for directional cues.
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