XRP has taken a major hit, dropping below $2 for the first time in four weeks. The sudden decline comes as the overall crypto market faces strong selling pressure, wiping out over $700 billion in just a week. With liquidations soaring to nearly $1 billion in the past 24 hours, the question now is whether XRP can recover.
XRP Falls to 4-Week Low
XRP has lost around 26% of its value in the past week, currently trading below the $2 mark. Despite the steep decline, its trading volume saw a slight jump of 12%, reaching $7.63 billion. However, the token has been fluctuating between $2.25 and $1.99 over the last day, showing continued market uncertainty.
One of the key reasons for XRP’s downfall appears to be the declining network activity. Crypto analyst Ali Martinez pointed out that XRP’s active addresses have dropped by 50% since December, falling from 202,250 to 101,169.
This slowdown in activity suggests that fewer traders are engaging with XRP, which may have contributed to its recent price struggles.
Key Levels to Watch 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 (SMA) at $2.72.
If 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 Sees $952M In 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. This includes $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.
