XRP Drops Below $3 as $539 Million Market Sell-Off Hits, What's Next?
2025-02-02
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XRP has fallen below the crucial $3 mark following a massive market sell-off, sparking concerns. The sudden downturn in the market has placed the third-largest cryptocurrency by market capitalization under pressure, raising questions about its next potential move.
The crypto market saw increased volatility over the weekend, and BTC traded weak for the third consecutive day to fall below $100,000, providing risk-off signals to traditional markets.
The larger cryptocurrency market fell alongside BTC, with CoinGlass reporting $539 million in crypto liquidations across various assets in the last 24 hours. Altcoins fared worse, some suffering double-digit losses.
XRP experienced a significant drop in value, and at the time of writing, XRP was down 7.82% in the last 24 hours to $2.77 and down 12% weekly.
What's next for XRP?
After days of consolidation near $3, the XRP price began to drop Jan. 31 and is on track for its third consecutive day of declines if today ends in losses.XRPUSD Daily Chart, Courtesy: TradingView">
The drop caused XRP to fall below $3, reaching a low of $2.75 in Sunday's trading session. The $3 price level had been a crucial psychological barrier, with XRP remaining above it since mid-January. Although XRP fell below the $3 level a few times, buyers were quick to buy the dip, and XRP returned to it.
If XRP regains momentum and reclaims the $3 level, it might indicate a recovery phase. This increases the chances of a rally to $4, and ultimately to $4.84.
The market will be closely monitoring key support levels and broader market trends to gauge XRP’s next move. Will it recover quickly, or is there more downside ahead?
The daily SMA 50 at $2.61 has held up as support for XRP since it embarked on a bull run in November 2024. If the decline continues, sellers will again attempt to push XRP to this price level where buyers are expected to enter.