The overall cryptocurrency landscape seems to be getting poorer day by day due to the continuous price drop. Amid this, XRP, the native token of Ripple Labs, has been hit hard by the current sentiment, witnessing a notable price drop of 6% in the past 24 hours and reaching a crucial level.
XRP Current Momentum
At press time, XRP is trading near $2.55 and has been attracting attention from traders and investors, resulting in a 10% jump in trading volume. The potential reason for the rise in trading volume is fear in the market.
Looking at the market outlook of investors and traders, a prominent crypto expert made a post on X (formerly Twitter), highlighting that XRP may be set for a pullback, as a technical indicator named TD Sequential flashes a sell signal on the daily time frame.
Besides the technical indicators, XRP’s current price action combined with the market sentiment makes it bearish.
XRP Price Action and Key Levels to Watch
According to expert analysis, with the recent price drop, the asset has reached a crucial support level at an ascending trendline that it has been following since the beginning of February 2025. When examining historical data, this trendline has always provided support and acted as a price reversal point, as whenever the price reached this level, it experienced upside momentum.
However, this time, the sentiment has shifted, and assets across the crypto landscape have been witnessing notable price drops, which makes it look like XRP will fail to hold this support level.
Based on the recent price momentum, if XRP fails to hold the trendline support and closes a four-hour candle below the $2.50 level, there is a strong possibility it could drop by 15% to reach the $2.10 level in the coming days.
$60 Million Worth of XRP Outflow
Despite the bearish outlook, long-term holders and investors have been accumulating tokens, as reported by the on-chain analytics firm Coinglass. Data from the spot inflow/outflow revealed that exchanges have witnessed an outflow of $60 million worth of XRP tokens in the past 24 hours, which seems like potential accumulation.
In such market conditions, investors and long-term holders view this market sentiment and current price momentum as an ideal buying opportunity, which might explain this significant outflow.
