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Ripple’s XRP is struggling as market turbulence intensifies. A sharp Bitcoin drop below $91K has triggered widespread bearish sentiment, leading XRP to plunge over 13% in just 24 hours. Liquidations have skyrocketed, and major holders are offloading large amounts of XRP, exacerbating concerns of further declines. The price recently broke below a key support level, fueling speculation that a deeper downturn could be on the horizon. Analysts caution that if selling pressure persists, XRP could tumble to $1.65.
Here's the old Ripple $XRP getting rejected exactly where it collapsed seven years ago. pic.twitter.com/WsgChr3jjn
— Alfonso De Pablos, CMT (@AlfCharts) February 25, 2025
XRP Liquidations and Whale Sell-Offs Shake Confidence
The recent XRP crash has inflicted severe losses on leverage traders. Over $56 million in liquidations hit the XRP market in a single day, with long traders losing more than $52 million across major exchanges, including Bybit, Binance, and OKX. This massive wipeout intensified market sell-offs, adding to downward pressure.
Whales have also adjusted their strategies amid the turmoil. On-chain data reveals that large holders recently transferred 52 million XRP—valued at approximately $128 million—to Bybit. This movement suggests a loss of confidence among institutional investors. Historically, strong whale support has been a key factor in stabilizing XRP, and its absence could make recovery more challenging.
From a technical perspective, coin has fallen below the critical $2.26 support level. Renowned crypto analyst Ali Martinez has flagged $1.65 as the next crucial target if bearish momentum persists. Adding to the concerns, the coin remains strongly correlated with Bitcoin’s price action. If Bitcoin continues its downward trajectory, the coin may struggle to maintain its footing above $2.
Institutional Demand and Regulatory Hopes Could Offer Stability
Despite the ongoing slump, institutional interest in coin remains notable. Asset managers like 21Shares and WisdomTree have recently submitted filings for spot XRP ETFs. The U.S. Securities and Exchange Commission (SEC) has acknowledged these applications, hinting at potential approvals in the near future.
Ripple Labs continues to push for mainstream adoption through strategic partnerships aimed at enhancing blockchain utility. Moreover, evolving regulatory frameworks under President Donald Trump’s administration could bring much-needed clarity to the XRP market.
Also Read: SEC’s Secret Meeting Sparks XRP Lawsuit Speculation: Will the Appeal Be Dropped?
For now, XRP stands at a pivotal juncture. A decisive move below $2 could trigger further panic, while positive regulatory and institutional developments may provide a much-needed lifeline for recovery. Traders should closely monitor key support levels as uncertainty grips the market.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
