The crypto industry has taken a sharp turn and it’s hit XRP hard. After holding above $3 for a bit XRP has dropped around 10% and is now at $2.81. Many are wondering if this is just a pit stop before the next big up or a deeper pullback. Let’s get into it so you can stay informed.
XRP’s drop from recent highs triggered a big liquidation. Across the broader crypto market $613m was wiped out in the same 24 hours. While the price dropped below $3 XRP’s volume surged 225% to over $10B. That’s a lot of volume and means traders are paying attention and could be positioning for a bounce – or more volatility if uncertainty continues. Despite the drop the RSI is at 50 which is neutral. This means neither buyers nor sellers are in control and many are waiting for a clearer signal before taking a decision.
Technicals are pointing to several levels. Some see $2.75 as support with a deeper floor at $2.50 if the momentum continues. A few seasoned traders also mention $2 as an “equilibrium” zone but that would require a bigger drop from here. On the other hand if the bulls take control XRP could go to $2.90 or $3.30 or even $5. That’s a big range but it shows how fast sentiment can change in crypto.
Beyond price moves the XRP community is in a social media war with Bitcoin maxis after rumors of a US Crypto Reserve that would favor Ripple’s tech. Some see this as noise, others think it’s market sentiment. XRP Lawyer Bill Morgan said,
“Bitcoin Maxis and the XRP army have been hammering each other for three days and the price of XRP and bitcoin have barely moved during that period.”
The whole space is on edge because of the ongoing legal battle between Ripple and the SEC and many investors are unsure of the token’s long term future. Even though Ripple won a small victory in 2024 the SEC’s appeal keeps things uncertain.
Alongside XRP, Solana is also feeling the pressure in today’s volatile crypto market. On January 27th, 2024, Solana’s price dropped sharply by 12%, falling below the crucial $232 support level to settle around $225. This significant decline pushed Solana’s market capitalization to approximately $109.85 billion. Trading activity surged by 75%, reaching $7.49 billion in just one day
A lot will happen in the next few days. The Federal Reserve interest rate announcement could move risk assets (including crypto) if it’s a surprise. Besides that traders are watching global economic data and any new Ripple legal news. Many long term holders are shrugging it off and seeing this as a temporary drop not a permanent fall.
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