XRP Faces Potential 13% Drop Amid Bearish Market Sentiment

XRP, the native cryptocurrency of the Ripple network, is facing a potential 13% decline in value, with technical indicators suggesting a possible drop to $2.10. This development comes amid bearish market sentiment and the breakdown of significant support levels, raising concerns among XRP traders about future volatility.

The current price of XRP hovers around $2.45, and the breach of critical support levels, such as the $2.50 mark, has triggered caution among traders. An analysis from COINOTAG highlights how the failure to maintain these support levels could lead XRP to test lower price points, specifically hinting at a possible fall to $2.10.

In the past 24 hours, XRP has witnessed a notable price drop exceeding 5%, trading at approximately $2.45. This decline comes alongside an uptick in trading volume, with an increase of 70%, signifying heightened market activity. While investors may perceive increased volume as a bullish indicator, it often reflects both buying and selling pressure, particularly given the current bearish trend in XRP.

On-chain analytics from Coinglass reveal that despite the price drop, long-term investors appear to be accumulating XRP. Over the last 24 hours, there has been an outflow of XRP valued at over $13.65 million, suggesting potential support for future price stabilization. However, ongoing uncertainty in market dynamics may hinder a full recovery, keeping traders on alert.

According to Coinglass, many traders are currently over-leveraged, with significant liquidation points set at $2.40 and $2.55. If XRP falls below $2.40, substantial liquidations of long positions (amounting to approximately $35.50 million) may occur. Conversely, a rise to $2.55 could trigger short position liquidations exceeding $40 million. Such high leverage creates additional volatility and highlights the precarious nature of current market conditions.

In conclusion, XRP is at a critical juncture, with key technical levels suggesting possible bearish movement amid a backdrop of mixed sentiment and over-leveraged trading positions. Investors should closely monitor these indicators in this volatile landscape, as the outcome will significantly impact XRP’s short-term price trajectory.