The price of the popular cryptocurrency XRP is in a risk zone following a significant drop. The loss of key support might affect its future movement.

Recent XRP Price Drop

In recent hours, XRP's price experienced a sharp drop of 2.38% in just two hours. This led to the loss of the key support level represented by the 200-day moving average on the daily chart.

Technical Analysis and Support

In addition to the loss of the 200-day moving average, XRP also witnessed a bearish retest of the 50-day moving average on the weekly chart. A similar scenario was observed in the April-May period when after weeks of attempting to break the resistance level, XRP's price failed, resulting in massive sell-offs and a drop to $0.3823 by early July. Hundreds of millions of dollars invested in bullish XRP positions were liquidated during this decline.

General Market Situation

Despite negative signs for XRP, the cryptocurrency market as a whole remains upbeat. For instance, crypto investment products saw an inflow of $2.2 billion last week - the largest since July. If XRP continues on this trajectory, it might indicate a unique trend for the currency and a hidden narrative unknown to the broader audience.

Although the recent drop in XRP's price is concerning, predicting future developments remains challenging. Trends in the cryptocurrency market continue to shift, requiring close monitoring.