XRP Plunges 6%, Hovers Near Crucial Support Level

XRP, the native token of Ripple Labs, has been experiencing a significant price drop, with a 6% decline in the past 24 hours. This decline has brought the price of XRP to a crucial level, raising concerns among traders and investors about a potential further drop to $2.10.

At the time of writing, XRP is trading near $2.55, with a 10% increase in trading volume. This increase in volume is likely due to the fear and uncertainty in the market. A prominent crypto expert has suggested that XRP may be set for a pullback, as a technical indicator named TD Sequential has flashed a sell signal on the daily time frame. Additionally, the current price action of XRP, combined with the overall market sentiment, indicates a bearish outlook.

According to expert analysis, XRP has reached a crucial support level at an ascending trendline that it has been following since the beginning of February 2025. Historically, this trendline has provided support and acted as a price reversal point. However, the current market sentiment suggests that XRP may fail to hold this support level, potentially leading to a 15% drop to the $2.10 level in the coming days.

Despite the bearish outlook, long-term holders and investors have been accumulating XRP tokens. On-chain analytics firm Coinglass reported an outflow of $60 million worth of XRP tokens from exchanges in the past 24 hours, indicating potential accumulation. In such market conditions, investors and long-term holders view this market sentiment and current price momentum as an ideal buying opportunity.