XRP Plummets Below $2.80: The Real Reasons Behind the Crash
XRP just hit a major turbulence zone—crashing through the $2.80 support level that had traders buzzing with optimism. This isn't just another dip; it's a full-scale market recalibration.
Market Forces Unleashed
Whales are dumping positions faster than traditional bankers dismiss crypto. Massive sell orders flooded exchanges, triggering cascading liquidations across leveraged positions. The $2.80 level wasn't just psychological—it represented critical technical support that once broken, opened the floodgates.
Regulatory Ghosts Haunting
While the SEC case resolution provided temporary relief, institutional adoption hasn't materialized at the pace bulls anticipated. Traditional finance's glacial move into digital assets continues to frustrate—they're still trying to understand blockchain while missing the entire point of decentralization.
Broader Crypto Winter Chills
Bitcoin's struggle to hold $100K dragged the entire market down. When BTC sneezes, altcoins catch pneumonia—and XRP's correlation coefficient remains stubbornly high. The 'altseason' narrative collapsed under weight of macroeconomic pressures and risk-off sentiment.
Technical Breakdown Accelerated
Chartists saw this coming. The RSI divergence warned of weakening momentum weeks ago. Now the 50-day MA has been shattered like a banker's reputation after the 2008 crisis. Support becomes resistance—and $2.80 now looms as a ceiling rather than a floor.
This correction separates true believers from fair-weather speculators. While traditional finance panics about short-term volatility, seasoned crypto veterans recognize these shakeouts as necessary market hygiene. The fundamentals haven't changed—only the weak hands have.
XRP price analysis
XRP price has broken below its 30-day moving average at $2.7625. This decline confirms short-term bearish momentum as sellers gain control, pushing the token to new lows. The moving average is now trending downward, signaling a continuation of selling pressure unless a quick recovery occurs.
The Relative Strength Index has dropped sharply to 24.43, placing XRP price firmly in oversold territory. While this indicates that selling may be overextended in the immediate term, it also reflects strong bearish momentum dominating the market right now. In many cases, an RSI this low can trigger a technical rebound, but the intensity of the current decline suggests caution before assuming buyers will step in.
In terms of downside risk, the immediate support lies around $2.745 to $2.740, which XRP price is now testing. A decisive break below could expose the token to deeper losses, with the next support likely forming NEAR $2.725. If bearish sentiment across the crypto market persists, XRP price could struggle to defend these levels and fall further down the line.
For a rebound to happen, XRP price WOULD need to reclaim $2.760 and then challenge the $2.770 resistance zone. A recovery above the 30-period MA would be an early sign of stabilization, however a move above $2.770 could pave the way for a retest of $2.790.
