XRP has experienced a significant drop over the past 24 hours, sinking over 10%. Crucially, it has now fallen below that all-important $2 barrier. Unfortunately, this downturn signals an even larger bearish sentiment taking over the entire cryptocurrency landscape. Those major players like Bitcoin, Ethereum and other altcoins are experiencing all-time losses, too. At the moment, XRP is trading on a bearish trend. Unless the broader real estate market begins to rebound, it will likely remain under long-term downward pressure.
Technical Analysis Indicates Further Downside Risk
XRP’s recent price action has penetrated a key support level just below $2.07, waving the caution flag and indicating more downside could be possible. For XRP, the next major support level is between $1.92 and $1.95. Should the price continue pumping and break above $1.91, we could expect the price to shoot for the $1.93-$1.94 region. We’ll be tracking those vehicles so stay tuned!
Those historical price movements suggest there may be some support for XRP. This support could manifest in the $1.80 to $1.79 range especially when factoring in Fibonacci levels. Both investors and traders alike will want to watch these levels for either an attractive long opportunity or confirmation of the bearish trend continuing.
Market Sentiment Turns Negative
XRP’s recent price panic can be explained, at least in part, by the overall cryptocurrency market mood as it has recently turned deeply bearish. The Fear and Greed Index, which looks at overall market sentiment, is at 40. This indicates that investors are moving to the side of fear. This change in sentiment tends to create a cascading selling pressure as panic spreads and creates a snowball effect of price drops throughout the markets.
The total cryptocurrency market capitalization including Bitcoin dominance has decreased to $3.04 trillion. This decrease is indicative of an almost 5% fall in just the past 24 hours. This drop serves as a stark reminder that the current market correction is indeed widespread, impacting all digital assets and not just XRP.
Broader Cryptocurrency Market Suffers Losses
This negative impact from the cryptocurrency crash extends further than just XRP. It does impact the big players, Bitcoin and Ethereum as well as most major altcoins. Bitcoin has decreased to $99,000 which is a loss of more than 4%. Ethereum has been hit even harder, down more than 10% to $2,179.
Solana, BNB, Dogecoin and Cardano have similarly reported losses, all down between 4% and 9%. This massive pullback only further proves just how closely knit the crypto space truly is. It shows how individual assets can be impacted by larger market trends and sentiment.
