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Highlights
- XRP price struggles under bearish pressure, risking a drop to $1 soon.
- Whale stablecoin holdings rise, signaling potential upcoming market shift.
- Technical indicators point to further downside unless XRP reclaims resistance.
XRP (Ripple) price has experienced a sharp correction, mirroring the broader crypto market decline. The token has fallen below a key resistance level, raising investor concerns. XRP is currently down over 30% from its peak of $3.40, approaching support levels seen before its previous highs. Over the past week, the Ripple price has dropped 20%, fueling speculation about further downside. As volatility grips the market, traders closely watch whether XRP could slide toward the $1 mark.
Here’s Why XRP Price May Slide To $1 Level
XRP price is struggling to maintain bullish momentum as bearish pressure intensifies. The cryptocurrency is trading under $3 following market-wide volatility. A temporary halt in Tuesday XRP Ledger’s blockchain production added to investor concerns. However, Ripple’s Chief Technology Officer, David Schwartz, confirmed that the network has recovered.
Bullish Momentum Fades
Ripple price experienced a sharp drop to $1.8 on Monday before rebounding. The decline disrupted its bullish momentum, shifting control to sellers. The broader crypto market also turned volatile on Wednesday, with Bitcoin sliding to $100,000 and altcoins mirroring its price action. The total crypto market capitalization is now $3.23 trillion, marking a 1.36% daily decline.
Falling Trading Volume Signaled Bearish Shift
A decrease in trading volume signaled a weakening uptrend. After XRP surpassed $2, volume consistently made lower highs. The 24-hour trading volume fell to $9.88 billion, reflecting a 50.97% drop. This decline reinforced bearish sentiment, making it difficult for buyers to regain dominance.
CME’s Denial of XRP Futures Dampens Optimism
Earlier this month, optimism surged when Ripple CEO Brad Garlinghouse met former U.S. President Donald Trump, fueling speculation of increased institutional adoption. However, that enthusiasm faded on Wednesday when the Chicago Mercantile Exchange (CME) denied plans to list futures for XRP and Solana (SOL). The rejection dampened hopes for greater institutional involvement, leading to further selling pressure.
Bearish Divergence Strengthens Downtrend
A bearish divergence on the weekly chart signaled further downside risk. Additionally, Ripple recently unlocked 500 million XRP, raising concerns about increased selling pressure. Despite strong inflows into XRP since the beginning of 2025, technical indicators point to a weakening uptrend.
Last week, the digital asset attracted $15 million in inflows, reflecting ongoing investor interest. Meanwhile, asset managers like Grayscale and Purpose Investments continue pushing for a spot in XRP ETF.
XRP Price Analysis
The price of XRP hovered at $2.4868, marking a 0.62% decline over the last four-hour session on Binance. The cryptocurrency showed increased volatility, with a low of $2.44 and a high of $2.71.
Technical analysis indicates a critical support level at $2.00, while resistance sits at $3.00. A sharp drop saw XRP briefly test levels near $1.50 before rebounding. If bearish pressure intensifies, XRP could experience a 20% decline from its current price to reach $2.00. Further downside could see it test the $1.00 psychological support, marking a potential 60% drop.
The Relative Strength Index (RSI) stands at 38, reflecting bearish momentum but not yet entering oversold territory. A rebound above 50 could indicate renewed buying pressure. Meanwhile, the MACD histogram remains negative, with the MACD line positioned below the signal line, signaling a bearish trend continuation.
For a bullish recovery, XRP needs to reclaim $3.00, a key resistance level that could pave the way for a push toward $3.50.
The whale holdings of stablecoins exceeding $5 million have shown notable fluctuations, aligning with key movements in XRP’s price. A surge in stablecoin accumulation by large investors was observed around mid-September, peaking in mid-October.
This increase coincided with an upward trend in XRP’s price, suggesting that whales were converting stablecoins into XRP or related assets. However, a subsequent drop in stablecoin holdings led to a slowdown in XRP’s rally, indicating a possible redistribution or profit-taking phase by these large investors. Whale stablecoin holdings have climbed to 50.12%, signaling that major players might be preparing for another market move.
Conclusion
With selling pressure mounting and technical indicators showing weakness, XRP’s price may decline toward the $1 mark. Market sentiment remains uncertain, and investors are watching for potential catalysts to reverse the trend.
Frequently Asked Questions (FAQs)
1. Can XRP recover from this decline?
2. Is XRP likely to drop to $1?
3. What key support and resistance levels should traders watch?
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