XRP has seen a significant drop, losing 26% of its value over the past week and falling below $2 for the first time in a month. This decline comes amid a broader sell-off in the crypto market, which has shed more than $700 billion in just seven days.
Reasons Behind XRP's Fall
XRP has lost around 26% of its value in the past week, now trading below the $2 mark. Despite the steep decline, its trading volume saw a 12% increase, reaching $7.63 billion. A key reason for XRP's downfall appears to be the declining network activity. Analyst Ali Martinez pointed out that XRP's active addresses have dropped by 50%, from 202,250 to 101,169 since December. This slowdown in activity suggests that fewer traders are engaging with XRP, contributing to its recent price struggles.
Key Levels for XRP
XRP saw a remarkable 500% gain from November to mid-January, but it has been stuck in the $2-$2.5 range since then. To regain momentum, XRP needs to reclaim the 50-day simple moving average at $2.72. However, if the selling pressure continues, the next support levels at $1.72 and $1.50 (200-day SMA) could be tested. Adding to the bearish pressure, XRP's Relative Strength Index (RSI) has recently entered an oversold condition, hinting that a potential reversal could be on the horizon if buyers step in.
Crypto Market Liquidations
The global crypto market has seen a sharp correction, with Bitcoin falling below $80K and Ethereum hitting a one-year low. According to Coinglass data, $952 million worth of positions were liquidated in the last 24 hours, including $474 million in BTC long positions, $216 million in ETH longs, and $25.28 million from XRP traders alone. However, in the past 24 hours, a total of 226,501 traders faced liquidation. Notably, the largest single liquidation order occurred on HTX for the BTC-USDT pair, valued at $38 million.
The crypto market remains volatile, and investors are cautiously watching the developments. Whether the current drop in XRP is temporary will depend on how it navigates key support levels in the coming days.
