Key Takeaways
- XRP has experienced a decline of 11% over the past week, with the potential to fall below the $2.0 threshold imminently.
- This downturn persists despite the recent introduction of the spot XRP ETF, which has garnered significant attention.
XRP’s Underperformance in a Challenging Market Landscape
XRP, the native cryptocurrency of the Ripple network, has encountered pronounced selling pressure, particularly at critical support levels, amid a broader landscape of underwhelming performance across the cryptocurrency market. Over the past week, XRP has experienced a notable depreciation of 11%, coinciding with an environment characterized by mixed institutional signals and escalating macroeconomic uncertainties.
The cryptocurrency market remains ensnared in a medium-term downtrend, with prevailing market sentiment situated firmly within the “fear” quadrant. This state of apprehension is compounded by increasing volatility surrounding Bitcoin and other prominent digital assets.
Notably, XRP’s price trajectory has shown a lack of responsiveness to the recent launch of Canary Capital’s U.S. spot XRP ETF (XRPC), which achieved an impressive first-day trading volume of $58.6 million—significantly exceeding analysts’ expectations of $17 million.
Despite this promising initiation for the ETF, derivatives markets are signaling distress, particularly evidenced by XRP’s failure to maintain the critical support level at $2.5. Consequently, this bearish trend precipitated liquidations amounting to $28 million in XRP long positions within a mere 48-hour window.
Potential for Further Decline: The $2.0 Psychological Barrier
An analysis of the XRP/USD daily chart reveals an ostensibly bullish and efficient configuration; however, this positivity is overshadowed by XRP’s recent underperformance. Last week, the asset encountered resistance at its 50-day exponential moving average (EMA) situated at approximately $2.49 and has since experienced an 11% depreciation, currently trading around $2.27 per token.
Should recovery efforts materialize, XRP may endeavor toward the next significant resistance level and 50-day EMA at approximately $2.55. The Relative Strength Index (RSI) currently registers at 42—indicative of waning bearish momentum yet remaining proximal to its neutral threshold of 50. A sustained recovery will necessitate an upward movement beyond this neutral RSI mark. Nevertheless, MACD indicators remain entrenched within bearish territory, signifying that sellers continue to exert control over market dynamics.
In contrast, should XRP persist in its current bearish trajectory, it may breach the psychologically significant $2.0 level and subsequently revisit key daily support situated at approximately $1.96.
