Home Altcoins News XRP Price Faces Bearish Pressure: Key Support Levels to Watch

XRP Price Faces Bearish Pressure: Key Support Levels to Watch

XRP Price

Ripple (XRP) has not been immune to the broader market’s recent downturn, with mounting pressure from various sectors, including U.S. tech giants and a plummeting crypto market. As XRP continues to face significant losses, investors are questioning whether this is just a temporary dip or if further declines are on the horizon.

Ripple’s Struggle in a Market-Wide Downturn

The broader cryptocurrency market has been shedding value, with a 6% drop in total market capitalization. This downturn was partly triggered by the DeepSeek controversy, which rattled U.S. stock markets and sent shockwaves through the crypto space. Ripple, as one of the leading altcoins, was not exempt from this sell-off. In just one day, XRP saw an 11% plunge, and it is now down nearly 20% from its peak of $3.40, which was reached just days before former U.S. President Trump’s return to the White House.

Despite the sharp losses, XRP was not showing signs of overheating, which is typical in market corrections. The price drop was more a result of the broader market panic, which dragged XRP and other altcoins lower. In fact, XRP’s massive 44.07% surge in long liquidations within a single day speaks to the growing fear in the market.

Key Support Levels and Whale Activity

For investors considering whether to “buy the dip,” it’s essential to observe key support levels. XRP’s most critical support zone since December has been the $2.30-$2.40 range, where it has consistently bounced back, attracting retail capital. This level now holds significance, as XRP’s price has regularly recovered from these ranges.

However, the recent market downturn has led to a substantial transfer of XRP, with around 29.5 million XRP sent to Coinbase during the 11% dip. This movement suggests that large holders, or whales, may be looking to cash out on their profits, which could put additional pressure on the price. These whales, who had accumulated large amounts of XRP since the U.S. election, are sitting on significant profits, with XRP surging 608% in that time frame.

Can XRP Hold Above $2?

XRP’s future price action depends heavily on whether big players decide to protect their profits or distribute their holdings. If whales decide to lock in their gains, XRP could potentially fall toward the $2 range, a level that has acted as support in the past. The key for XRP now is whether these large investors will continue to accumulate or start distributing, which could dictate the token’s next move.

Despite a large influx of $4 billion worth of XRP by whales since the U.S. election, there is no clear indication yet as to whether this accumulation phase is over. Should the market-wide downturn continue, more holders could look to protect their profits, potentially pushing XRP down to its next support levels.

Conclusion

As Ripple continues to face selling pressure amidst a broader market correction, XRP’s price trajectory remains uncertain. While the $2.30-$2.40 range has acted as strong support, the activity of large investors and the overall market sentiment will be crucial in determining whether XRP can maintain this level or drop further. For now, XRP’s price remains under significant scrutiny, and the actions of whales could determine the next key support or resistance point for the token.

Traders and investors alike will need to stay alert to shifts in market sentiment, whale activity, and the broader economic landscape to understand whether XRP’s bearish turn will continue or if a rebound is on the horizon.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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