Key takeaways
- XRP is down 11% in the last seven days and risks dropping below $2.0 soon.
- The bearish performance comes despite the recent launch of the spot XRP ETF.
XRP continues to underperform
XRP, the native coin of the Ripple ecosystem, faced intense selling pressure at key support levels in recent days, as the broader crypto market continues to underperform.
The coin has lost 11% of its value over the last seven days. The decline comes amid a backdrop of mixed institutional signals and heightened macro uncertainty. The crypto market remains trapped in a medium-term downtrend, with sentiment currently in the fear zone amid growing volatility for Bitcoin and others.
XRP’s price failed to react despite Canary Capital’s newly launched U.S. spot XRP ETF (XRPC) registering $58.6 million in first-day volume, surpassing the $17 million analysts had predicted.
Despite the strong start by the ETF, derivatives markets flashed stress signals, with XRP losing the $2.5 key support level. The bearish performance resulted in $28 million worth of XRP long positions being liquidated in the market over the last 48 hours.
XRP could dip below $2.0 if the current support level fails
The XRP/USD daily chart is bullish and efficient despite XRP’s poor performance in recent weeks. The coin’s price faced rejection from the 50-day EMA at $2.49 last week and has lost 11% of its value since then. It is now trading above $2.27 per coin.
If the recovery efforts intensify, XRP could rally towards the next major resistance level and 50-day EMA at $2.55. The RSI on the daily chart is 42, near its neutral level of 50, suggesting fading bearish momentum. The RSI will need to move above the neutral 50 for XRP to record a sustainable recovery. The MACD lines also remain within the bearish region, indicating that the sellers have not given up control of the market.
However, if XRP continues its bearish correction, it could drop below the $2.0 psychological level and retest the next daily support at $1.96.
