The increased volatility in the cryptocurrency market in recent weeks has put even large-cap altcoins under pressure. In this process, XRP attempted to recover after falling to the lowest levels seen since April. Although the price’s reaction towards $1.94 levels gives investors hope, the market structure is still fragile. Tightening global liquidity conditions and Bitcoin’s increasing market dominance stand out among the key factors that complicate XRP’s search for direction.
Pressure Increases in the Altcoin Market
The decline in XRP is not read as a weakness specific to this token. Sharper losses on a weekly basis in other major altcoins such as Ethereum, Solana and Cardano reveal the general decline in risk appetite. The fact that the Altcoin Season Index remains at 14 shows that investors are avoiding taking aggressive positions at this stage. This picture indicates a cautious expectation rather than panic selling.
Macroeconomic developments were also one of the factors that increased this pressure. Before the Bank of Japan’s interest rate decision, positions in risky assets were reduced in global markets. Although the expected interest rate increase provided short-term relief, it could not permanently change the general risk perception. Therefore, altcoins like XRP remain sensitive to funding conditions and market sentiment.
XRP Fundamentals and Technical Outlook
Despite short-term fluctuations, XRP’s long-term story remains strong. Its role in cross-border payments, moves towards regulatory clarity and high on-chain liquidity are keeping institutional investors interested. The daily trading volume of XRP, which ranks fourth with a market value of approximately $118 billion, is around $2.9 billion, indicating deep liquidity. The fact that the circulating supply is at 60.5 billion tokens and the supply structure is clear also stands out as an element of trust.
From a technical perspective, the picture is more cautious. XRP price has been moving in a falling channel since December. Although reaction buying from $1.85 pushed the RSI indicator to 58 levels, indicating that the selling pressure has weakened, the $2.00 level remains a strong resistance. If this level is exceeded, a new movement area may occur towards $ 2.17. Otherwise, there is a risk that the price will retest the $1.85 and even $1.77 supports.
On the other hand, news that Ripple has launched a new pilot program to expand its ongoing global payment partnerships also attracts attention in the market. This development is considered as a separate element that supports the interest in XRP on the fundamental side.
As a result, XRP is at a critical juncture from both a technical and macro perspective. Whether the price can sustain above $2.00 in the coming days will be the main factor that will determine the short-term direction. In the long term, strong fundamentals still provide an important basis for patient investors.
