XRP Has Taken a Major Hit, Dropping Below $2 for the First Time in Four Weeks

XRP has taken a major hit, dropping below $2 for the first time in four weeks. The crypto market is in turmoil, wiping out over $700 billion

The crypto market continues to bleed, wiping out over $700 billion in just a week as panic selling grips investors. In the past 24 hours alone, liquidations have surged to nearly $1 billion, leaving traders on edge.

One of the hardest-hit tokens is XRP, which has taken a major hit, dropping below the $2 mark for the first time in four weeks.

Here’s a closer look at XRP’s price movements and what analysts are watching.

XRP Drops Below Key Mark

On Monday morning, XRP was trading at $1.99, reflecting a 26% loss over the seven days. Despite the steep decline, XRP’s trading volume saw a slight jump of 12%, reaching $7.63 billion.

However, the token has been fluctuating between $2.25 and $1.99 over the last day, showing continued market uncertainty.

One of the key reasons for XRP’s downfall appears to be the declining network activity. Crypto analyst Ali Martinez pointed out that XRP’s active addresses have dropped by 50% since December, falling from 202,250 to 101,169.

This slowdown in activity suggests that fewer traders are engaging with XRP, which may have contributed to its recent price struggles.

Key Levels to Watch For XRP

XRP saw a remarkable 500% gain from November to mid-January, but it has been stuck in the $2-$2.5 range since then. To regain momentum, XRP needs to reclaim the 50-day SMA at $2.72.

If selling pressure continues, the next support levels at $1.72 and $1.50 (200-day SMA) could be tested.

Adding to the bearish pressure, XRP’s RSI has recently entered oversold conditions, hinting that a potential reversal could be on the horizon if buyers step in.

Crypto Market Faces Heavy Liquidations

The broader crypto market is also facing turbulence, with Bitcoin price slipping below the $80K mark and Ethereum reaching a one-year low.

According to Coinglass, $952 million worth of positions were liquidated in the past 24 hours. This includes $474 million in Bitcoin long positions, $216 million in Ethereum longs, and $25.28 million from XRP traders.

In total, 226,501 traders faced liquidation, with the biggest single order happening on HTX for the BTC-USDT pair, valued at $38 million.

As crypto prices continue to slide and traders face massive liquidations, the market remains in a fragile state. All eyes will be on key resistance and support levels to see where XRP goes next.