XRP’s price took a dramatic plunge, falling below the key $2 level and unsettling the cryptocurrency community. The token now trades at $1.97, down from $2.41 in less than 24 hours. This swift 18% decline has drawn the attention of traders and analysts alike.
XRP’s market cap experienced a significant drop, tumbling from $137.8 billion to $113.8 billion. This shift represents a massive $24 billion loss in just one day. The sudden decline underscores the volatility of the cryptocurrency market, with XRP being one of the hardest-hit tokens.
Trading Volume Spikes as Market Reacts
During the sell-off, XRP’s trading volume surged to $24.75 billion, marking an 8.38% increase over the past 24 hours. The heightened trading activity reflects the flurry of market participants repositioning their portfolios amid the sudden downturn.
Related article: XRP Whale Accumulation Spikes: What’s Driving the Demand?
Despite the sharp correction, XRP still trades above its 200-day simple moving average (SMA), signaling that the broader trend remains bullish. Over the past 30 days, XRP recorded gains of 76.35% and achieved 17 green days out of 30, reflecting a 57% positive streak. This data suggests that, while the short-term outlook appears shaky, the overall trend stays intact.
Key Levels to Watch: Support at $1.92, Resistance at $2.55
Short-term traders are closely monitoring the $2 psychological barrier as a potential recovery point. If XRP can hold the immediate support level at $1.92, it may stabilize and attempt to regain higher ground. On the upside, the $2.55 resistance level will likely serve as a key hurdle for bullish momentum.
Source: CoinMarketCap
Before the price crash, several prominent chart analysts on X (formerly Twitter), such as Crypto Tony, claimed XRP was showing relative strength compared to other altcoins. However, this optimism quickly faded as selling pressure intensified, pushing prices lower.
Renowned on-chain analyst Ali Martinez highlighted a potential recovery scenario. According to Martinez, if XRP climbs back to $2.62, approximately 20.50 million in short positions could face liquidation.
Related article: XRP’s Recent Rally: Is the Price Move Sustainable?
This short squeeze could act as a catalyst for a swift recovery if market sentiment turns bullish. Although the sudden drop rattled investors, many analysts remain cautiously optimistic about XRP’s long-term potential.
If XRP reclaims the $2 mark, it could restore trader confidence and set the stage for renewed upward momentum. Until then, all eyes remain on the support at $1.92 and resistance at $2.55 as key indicators of the token’s next move.
The post XRP Struggles to Hold $2 as $24 Billion Vanishes from Market Cap appeared first on FXcrypto News.
