XRP Drops to Lowest Level Since November 2024
XRP has dropped a lot to $1.44, its lowest point since November 2024. The drop happens at the same time as more selling pressure in the cryptocurrency market as a whole. Investors in digital assets are more cautious because Bitcoin is weak.
Donald Trump won the election in November 2024. At first, people were hopeful about pro-crypto policies, which made XRP prices go up a lot. However, that positive momentum faded when macroeconomic pressures came back.
Post-Election Rally Fades Into Downtrend
After the election, XRP rose sharply above $3.50. The rally reached its highest point in July of last year, when it was around $3.65. Since then, the price has been going down steadily.
In the last few weeks, the downward trend has sped up a lot. The current structure is made up of lower highs and constant selling pressure. Technical analysts now say that the overall trend is clearly bearish.
Break Below $1.60 Shows Seller Control
The most important thing that has happened is that the price has dropped below $1.60 support. That level was a strong demand zone in April. During that earlier sell-off, buyers jumped in quickly.
Under new pressure, the old support has now clearly failed. A broken demand zone often turns into resistance above. The breakdown shows that sellers are back in charge of the market.
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Air Pocket Reaches $1.00 in Psychological Value
Charts show that there hasn’t been much trading volume between $1.44 and $1.00 in the past. Traders call this a technical air pocket. When there isn’t much liquidity support, prices can go up quickly.
$1.00 is a very important psychological level. Buyers often become interested in round numbers again. But the current momentum suggests that the situation will remain fragile.
Options Markets Show Bearish Positioning
Deribit options flows show that more people want protection from losses. More and more traders are using put spreads to bet on more drops. Strangle strategies also show that people think volatility will go up.
People who own put options have the right to sell at set prices. More put activity usually means that people are trying to protect themselves from more weakness. Options markets often see changes in direction before spot traders do.
Bitcoin Weakness Amplifies Broader Risk Aversion
Bitcoin’s drop is still putting a lot of pressure on other cryptocurrencies. In stressed markets, the correlation between major digital assets stays high. When bitcoin drops a lot, altcoins often don’t do as well.
Uncertainty on a large scale makes volatility worse in speculative sectors. When things are unstable, investors switch to defensive assets. The drop in XRP is due to general market sentiment, not specific fundamentals.
Outlook Hinges On Stabilization Or Capitulation
A lot depends on whether bitcoin stabilizes soon on what happens next. If people keep selling, XRP could drop to around $1.00. If the price goes back up above $1.60, it would go against the current bearish stories.
Caution rules the market until things start to change. After support fails, technical damage looks like it will be big. Traders are now keeping a close eye out for signs of either consolidation or capitulation.
