XRP is in the hot seat right now, and not in a good way. 🔥 Over the past 24 hours, the token has taken a sharp nosedive, losing 4.5% of its value. Even worse, it’s been underperforming most of the top-10 cryptos over the past week. 😬
With three straight bearish weekly candles (something we haven’t seen since June 2024), the odds of XRP testing its crucial $2 support level are growing stronger by the minute. Is this just the beginning of a bigger crash? Let’s break it down.
🚨 Key Metrics Flash Red
1️⃣ Futures Market in Trouble
The XRP futures market is struggling to bounce back. 🚫 Open interest has plummeted by over 54% in three weeks, wiping out more than $2 billion in positions. And guess what? Funding rates just turned negative—a classic sign that traders are betting on more downside.
2️⃣ Flat Binance Reserves
Spot investors don’t seem to be buying the dip. 📉 Data from CryptoQuant shows XRP reserves on Binance have been flat this week after a major sell-off in mid-December. Translation? Investors are not rushing to stack up on XRP, likely fearing another round of profit-taking.
3️⃣ Holiday Slump = Bearish Momentum
The holiday season brought more than just eggnog and fireworks—it also brought a massive slowdown in spot trading volumes. 🥱 With bulls taking a break, XRP’s price is at the mercy of the dominant bearish trend.
🔎 XRP Price Looks Weak (Like, Really Weak)
Technically, XRP is falling apart. 🤕 The altcoin has broken out of its symmetrical triangle pattern on the daily chart, and not in a good way. This move could drag prices into a liquidity zone between $1.80 and $1.95.
On the 4-hour chart, XRP just dipped below the critical 200-day EMA—again. Last time this happened in November, bulls staged a quick recovery. But this time? Not so much.
Crypto analyst @DomCrypto summed it up best:
“XRP’s price action is incredibly weak right now. If we lose the $2 mark, $1.90 is the next target. Let me be wrong, but I’m bracing for another leg down.”
📉 What’s Next for XRP?
Right now, XRP is teetering around $2.07, where there’s very little liquidity to support it. If bulls can’t step in fast, we might see it tumble toward $1.90. 🕳️
And let’s not forget: Bitcoin is also looking shaky. If BTC dips further, it could drag XRP and the rest of the market down with it.
💡 Pro Tip: Stay cautious, watch those charts, and keep an eye on key levels. It’s a volatile market out there, and anything can happen.
Will XRP bounce back, or is the $2 level about to crack? Let us know your thoughts below! 👇🔥
