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- XRP fell below $2 after a bearish death cross appeared on the chart.
- Over $40M in long positions were liquidated as volume surged.
- Support near $1.85 is now critical for a potential rebound.
XRP has fallen below the closely watched $2 level after a sudden technical reversal rattled traders and accelerated selling pressure. The drop followed the appearance of a death cross on XRP’s chart, a bearish signal that arrived just days after a short-lived golden cross had hinted at upside momentum.
The move caught leveraged traders off guard. As XRP slid, more than $40 million in long positions were wiped out, reflecting how quickly sentiment flipped across the market.
Death Cross Sparks Heavy Selling Pressure
A death cross occurs when a short-term moving average drops below a longer-term average, often interpreted as a signal of weakening momentum. In XRP’s case, the pattern prompted rapid position closures, pushing the price down to around $1.97, a daily decline of roughly 3.4%.
Despite the price drop, trading activity surged. XRP’s 24-hour volume jumped more than 190% to approximately $3.86 billion. Rising volume alongside falling prices typically points to aggressive selling rather than quiet consolidation.
Over the past week, XRP has shed about 5% after failing to hold above its recent highs near $2.10, reinforcing short-term bearish pressure.
Liquidations Erase Bullish Bets
The sharp move lower led to widespread liquidations in the derivatives market. Traders positioned for upside were hit hardest, with long positions accounting for the vast majority of losses. Open interest, which had risen sharply over the weekend as traders anticipated a rebound, dropped nearly 10% as leveraged bets were flushed out.
This reset suggests that speculative positioning has been largely cleared, reducing excess leverage but also highlighting how fragile confidence had become near the $2 mark.
Broader Market Weakness Adds to the Pressure
XRP’s decline did not happen in isolation. The broader crypto market sold off after renewed concerns over potential U.S. tariffs on European goods weighed on risk assets. Bitcoin slid from recent highs, while Ethereum also posted notable losses on the day.
Traditional markets reflected similar caution. Equity futures weakened, while investors rotated toward perceived safe havens such as gold and silver. The shift in risk appetite spilled into crypto, amplifying XRP’s technical breakdown.
Key Levels to Watch Going Forward
From a technical perspective, XRP briefly dipped toward the $1.85 area, where buyers stepped in. That zone has acted as short-term support and aligns with a recent breakout area from earlier this month. Momentum indicators show XRP approaching oversold conditions, suggesting selling pressure may be easing.
If buyers defend this demand zone, a move back toward $2 remains possible. However, failure to hold support could expose the token to deeper losses if market sentiment continues to deteriorate.
For now, XRP sits at a crossroads—caught between fragile macro sentiment and technical levels that could decide its next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
