Key Takeaways
- The value of XRP has dropped by 11% in the past week, nearing the critical $2 threshold.
- This downward trend persists despite the recent launch of the XRP spot ETF.
XRP Continues to Underperform
XRP, the native token of the Ripple ecosystem, has experienced significant selling pressure at key support levels in recent days, continuing the broader cryptocurrency market’s trend of underperformance.
The token has lost 11% of its value over the last week amid mixed institutional signals and increasing macroeconomic uncertainty. The cryptocurrency market remains entrenched in a medium-term bearish trend, with sentiment currently in the “fear” zone as volatility increases for Bitcoin and other tokens.
Despite the recently launched U.S. XRP spot ETF by Canary Capital recording a volume of $58.6 million on its first day—significantly exceeding analysts’ expectations of $17 million—the price of XRP has remained unresponsive.
The ETF’s promising start has not alleviated stress signals in the derivatives market, with XRP breaking below the critical support level of $2.50. This downward performance has resulted in the liquidation of approximately $28 million in long positions on XRP over the last 48 hours.
XRP May Drop Below $2 Mark if Current Support Fails
The daily XRP/USD chart remains bullish in effectiveness despite XRP’s poor performance recently. Last week, the price was rejected by the 50-day EMA at $2.49 and has since lost 11% of its value. It is currently trading above $2.27 per token.
If recovery efforts intensify, XRP could approach the next major resistance level at $2.55 and the 50-day EMA. The RSI on the daily chart is at 42, close to the neutral level of 50, suggesting a potential easing of bearish momentum. For a sustainable recovery, the RSI needs to cross above the neutral 50. Meanwhile, MACD lines remain in bearish territory, indicating that sellers continue to maintain control of the market.
However, should XRP continue its bearish trajectory, it may fall below the psychologically significant $2 mark and retest the next daily support level at $1.96.
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