Why XRP Price is Going Down Today?

XRP price is currently facing downward pressure following a significant 12% decline over the past week, pushing the cryptocurrency below the $2 mark. In the last 24 hours, XRP has fallen by 8%, aligning with a broader market downturn, which saw a 5.12% drop across the crypto space.

This marks an extension of the coin’s seven day slide, primarily driven by profit-taking after the launch of ETF products, rising fear in the market, and several technical breakdowns.

XRP Price Faces Pressure Amid Market Decline

XRP’s price dipped from $2.17 earlier in the day to briefly touch $2.16. This sharp correction has been exacerbated by a notable 30% drop in trading volume, now at $4.75 billion. 

This decline in volume indicates waning market interest, with XRP’s market capitalization currently sitting at $130.02 billion. 

Despite a brief rally that saw the coin gain 10% in the last week, the current momentum is weak, with weekly losses now at 11%, erasing much of November’s previous gains.

XRP’s long-term holders are showing signs of anxiety as the coin’s price struggles to stay above $2. Following a period of optimism, the market sentiment has shifted from euphoria to denial. 

Currently, XRP faces the risk of falling further, as seen in the latest NUPL chart, which reflects a growing sense of unease among investors.

Impact of ETF Launches and “Sell-the-News” Effect

This week saw the launch of spot XRP ETFs by both Franklin Templeton and Bitwise, bringing in $134 million in weekly ETF inflows. However, the news triggered a typical “sell-the-news” reaction, where investors locked in profits, causing a further dip in XRP’s value. 

The current market sentiment remains bearish, with fear driving selling activity. The uncertainty around the Federal Reserve’s next moves, alongside ETF outflows and general market liquidations, has left many investors cautious.

 XRP’s struggles are part of a larger trend; BTC price and Ethereum also face significant losses. BTC has broken below the $90,000 mark, while ETH struggles to hold above $3,000, down 8% in the last 24 hours. 

How Low Can XRP Price Go?

The XRP price crashed to $2.05 after showing strong bearish signals in the market. This decline follows a series of downward movements in the price, signaling a potential continuation of this trend.

The immediate resistance level lies around $2.20, and the next key support is seen at $2.00. If the bearish momentum continues, XRP could test this lower support.

The immediate target for bears is the $2.0 mark, which represents a crucial support level. If XRP manages to break this level, the next target could be even lower. 

On the other hand, a potential rebound could see XRP testing resistance at $2.2 again as the Future XRP outlook is still bearish.

The  MACD indicator is showing a clear bearish crossover, with the MACD line below the signal line. This suggests that bearish momentum is dominating the market.

The RSI is also below the 30 mark at 28, indicating that XRP is in oversold conditions. This suggests that while a further decline is possible, a potential reversal or at least a short-term bounce might occur once the market finds a bottom.