XRP Plunges 6% Amid Mounting Selloff Pressure and Bitcoin Sentiment Erosion

Digital asset markets face renewed pressure as XRP leads the downward charge.

The Ripple-backed cryptocurrency tumbles 6% while broader market sentiment falters.

Mounting Selloff Pressure

Traders rush for exits as selling volume spikes across major exchanges. The downward momentum builds despite recent institutional interest in the token.

Bitcoin Weakness Spreads

Market leader Bitcoin shows cracks in its armor, dragging altcoins lower in its wake. The correlation between major cryptocurrencies tightens as risk appetite diminishes.

Technical indicators flash warning signals across multiple timeframes. Support levels crumble under persistent selling pressure.

Another day in crypto—where your portfolio can drop 6% faster than a Wall Street banker can say 'I told you so.' The only thing more volatile than the prices might be the excuses that follow.

TLDR

• XRP drops 6.4% as institutional selling drives volume surge of 126%.
• XRP struggles at $2.37 resistance after failing to regain key levels.
• XRP’s Relative Strength Index turns negative, signaling weakened momentum.
• XRP traders eye $2.08 support, failure risks further decline to $2.00.

XRP has experienced a notable decline, shedding 6.4% to $2.20 over the past 24 hours. The drop came amid significant institutional selling pressure that spiked trading volumes, further driving the bearish sentiment. This price move reflects a broader trend in the cryptocurrency market, where XRP’s downward momentum was compounded by weak Bitcoin sentiment. Traders are now focusing on key support levels, particularly $2.08, to gauge whether the token can avoid further losses.

XRP’s Struggles Amid Heavy Institutional Selling

XRP’s sharp drop coincided with a surge in trading volume, which was 126% above average. This volume spike indicates that institutional investors were actively involved in the selloff, which further accelerated the token’s decline. The selloff resulted in XRP breaking several key support levels, including a drop below $2.17. This marked a shift from a potential accumulation phase to active distribution, signaling that selling pressure may persist in the short term.

At the same time, XRP faced strong resistance at $2.37, where previous attempts to recover were consistently rejected. This failure to reclaim critical price levels highlights the weakness in the token’s price action, with further downside potential if the $2.08 support is not maintained.

Despite the overall negative sentiment, XRP managed a brief recovery late in the session, partly driven by news of Ripple’s RLUSD stablecoin surpassing $1 billion in market capitalization. However, this was not enough to counteract the prevailing bearish trend.

Momentum Indicators Turn Negative

XRP’s technical indicators show a clear shift towards a bearish outlook. The Relative Strength Index (RSI) has fallen from overbought territory earlier in the month, indicating waning bullish momentum. In addition, momentum indicators have turned negative, signaling a weakening buying interest.

The failure to break above $2.22, after several attempts, suggests that the token faces significant resistance. These factors contribute to the prevailing downtrend, making it difficult for XRP to regain bullish momentum without fresh buying pressure.

Traders are also observing the price action closely for any signs of a reversal. The failure to hold above the $2.17 resistance level, combined with declining momentum, suggests that XRP could face further losses. The price action, characterized by lower highs and lower lows, supports the view that XRP is in a short-term downtrend. Unless demand picks up at key levels, the risk of further declines remains high.

Support Levels in Focus

The $2.08 price level has become a crucial point for traders. If XRP cannot hold above this level, further downside risk toward the $2.00 psychological zone may materialize. The $2.00 mark is considered a significant support level, and a break below it could lead to accelerated selling. Traders are looking for signs of stabilization around $2.08, as it could signal a potential reversal or consolidation before the next move.

At the same time, for any significant recovery to take place, XRP WOULD need to reclaim the $2.22 level. A move back above this resistance zone could indicate a shift in sentiment and potentially bring back bullish momentum. However, given the current bearish trend, such a recovery would require strong buying interest and broader market stability.

Market Sentiment and Broader Implications

The broader cryptocurrency market has remained relatively stable, yet XRP’s isolated weakness highlights the token’s vulnerability in the current environment. The overall market sentiment remains cautious, with Bitcoin’s bearish outlook weighing on the price of many altcoins, including XRP.

This interconnectedness with Bitcoin’s price action means that any further negative movement in Bitcoin could exacerbate XRP’s decline, especially if institutional selling continues.

While XRP’s future price direction largely depends on holding key support levels, institutional involvement in the current price movement suggests that the market is being closely watched by large investors. The outcome of this selling pressure will be pivotal in determining the short-term trajectory of XRP.