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- XRP plunged under the key $2 level amid a broader crypto market sell-off, hitting an intraday low of $1.98 before a slight recovery.
- Over $20.33 million in XRP positions were liquidated, with long positions making up 63% of the total wipeout.
- The crypto downturn aligns with a 3% drop in E-mini Nasdaq-100 futures, signaling weak investor confidence.
XRP, one of the largest altcoins by market capitalization, plummeted below the crucial $2 support level for the first time in nearly a month. The price collapse unfolded on Wednesday as the broader cryptocurrency market suffered a widespread sell-off, driven by macroeconomic uncertainties and bearish sentiment.
The digital asset hit an intraday low of $1.98 on Binance before managing a modest recovery. At the time of writing, XRP is trading at $2.04, reflecting a 2.62% decline over the past 24 hours. The token’s 24-hour trading volume surged to $12.15 billion, while its market capitalization now stands at $118.97 billion.
The downturn has triggered a significant wave of liquidations, with approximately $20.33 million worth of XRP positions wiped out in the past day, according to CoinGlass data. Notably, long positions account for roughly 63% of the total liquidations, indicating that many traders betting on XRP’s continued strength were caught off guard by the sudden drop.
However, XRP is not alone in its struggle. The broader cryptocurrency market remains under pressure as investor confidence weakens. The E-mini Nasdaq-100 futures, often used as a barometer for market sentiment, have slid by more than 3%, further exacerbating the bearish trend across digital assets.
XRP Fails to Defy Market Trends
Despite past optimism that XRP could outperform its peers, the token has so far failed to decouple from the broader market downturn. Legendary trader John Bollinger, the creator of the Bollinger Bands, previously suggested that XRP had the potential to become a new market leader due to its resilience. However, the latest price action suggests that even strong technical setups struggle in the face of macroeconomic headwinds.
According to Glassnode, XRP has witnessed one of the most significant declines in terms of the total supply in profit. Approximately 5% of XRP’s supply has moved out of profit in recent days, a signal that long-term holders are facing mounting pressure. Interestingly, Dogecoin (DOGE) has suffered an even steeper decline, with nearly 10% of its supply moving into lost territory.
XRP enjoyed a spectacular rally in Q4 2024, driven by renewed enthusiasm and increased institutional interest. However, its momentum faded in early 2025 as macroeconomic concerns, declining retail interest, and a broader crypto market slowdown took center stage.
With uncertainty looming, all eyes are on whether XRP can reclaim the $2 support or if further downside is in store. The next few days will be crucial in determining whether the digital asset can regain its footing or if the bearish momentum will push it even lower.
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