XRP experiences a rapid decline with $25 billion lost within a 24-hour period
XRPhas experienced a significant price crash, performing much worse than the general cryptocurrency market, which remains volatile due to the implementation of tariffs by the Donald Trump White House.
The recent drop has nullified XRP’s recent attempt to maintain a price above the $3 mark in order to reach a new all-time high.
As of the time of writing, the token is trading at $2.50, reflecting daily losses of over 15%. On the weekly chart, XRP is down almost 20%. At one point on February 3, XRP experienced a sharp decline of about 40% within 13 hours before recovering slightly.
This price plunge has been accompanied by massive capital outflows. Currently, XRP’s market cap is $138.09 billion, a total decrease of $24.97 billion in the past 24 hours. According to CoinMarketCap data, the asset has lost $32.96 billion on a weekly basis.
In addition, whale investors have been selling off their XRP holdings as the token showed signs of weakness. Prominent on-chain cryptocurrency analyst Ali Martinez shared data on February 3, revealing that whales sold more than 130 million XRP within 24 hours.
It remains to be seen whether the full impact of this selling has been realized, as Ripple has the potential to release another 1 billion XRP from escrow, which could increase volatility.
Despite the current bearish movement, the sentiment surrounding XRP remains optimistic in the long term, particularly from a regulatory perspective. There is anticipation that the Securities and Exchange Commission (SEC) will soon make a decision on the Ripple case, potentially ending the legal lawsuit or reaching a settlement in favor of the blockchain company.
The resolution of this case could have a significant impact on the asset, especially since XRP’s recent price surge was partly driven by speculation of favorable regulation under the Trump administration.
Similarly, the regulator will decide on an XRP exchange-traded fund (ETF) application. If approved, the product could attract institutional capital to the asset, and chances of approval appear stronger with a perceived more favorable SEC stance.
From a technical standpoint, analysis by pseudonymous cryptocurrency trading expert TheGreat Mattsby on February 3 identified key price levels to monitor for XRP.
The expert noted that XRP successfully tested the conversion line at $1.98 and the baseline at $1.87 during the monthly timeframe, which act as crucial support zones. These levels, part of the Ichimoku system, define momentum and trend direction.
Currently trading above the $2 level, XRP has retraced from its recent high of $3.26. If support holds, there is a possibility of a renewed push towards resistance. However, a breakdown below $1.87 could trigger a deeper retracement to the range of $1.30 to $1.50.
Overall, market sentiment for XRP remains bearish, as indicated by the Fear & Greed Index at 44, indicating fear. The 50-day simple moving average (SMA) of $2.58 shows that XRP is below its short-term average, suggesting a potential extension of the bearish outlook.
However, the 200-day SMA at $1.25 reflects long-term growth potential. The 14-day Relative Strength Index (RSI) stands at 40.02, indicating a neutral position with room for movement, although a short-term downside appears more likely in the near future.
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