The price of XRP has recently fallen more than 15% and is now trading at $ 2.08. The XRP market cap has also fallen to $ 120.57 billion with this decline, but the trading volume has increased by $ 10.72 billion, with an increase of 184%. In the last month XRP value There has been a decline of more than 30%, causing investors to worry about what will happen next.
Why is XRP falling?
Only XRP is not declining. There is pressure on the entire crypto market, in which Bitcoin is unable to go above $ 100,000 and other major cryptocurrency has also declined. The XRP declined due to certain reasons.
Due to the fall of XRP
Important resistance level failure ($ 2.60): The XRP recently tried to cross the $ 2.60 level, but failed. This increased the sales pressure and made it difficult to recover the price.
Market decline: Bitcoin is around $ 87,780 and has fallen by 8%, while Ethereum has declined by 11%. Other major altcoins such as Soolana, Dogecoin and Cardano have also fallen down. This weak market sentiments have contributed to the loss of XRP.
Heavy liquidation in XRP Futures: The XRP futures of about $ 57.94 million have been liquidated in the last 24 hours. Most of these were long positions, which means that the traders who expected the XRP value to grow, were forced to sell it under compulsion and the price fell further.
Fall in funding rate: The XRP funding rate, which reflects the demand for long position, has come down from 0.25% on February 22 to 0.04% on 24 February. This means that traders are no longer sure when the price of XRP rises and has become more alert.
Head and shoulder pattern: A Vintage Bearish Trend, Head and Shoulder is being built on the chart. If it falls below the level of $ 1.79, the next support can be around $ 1.6130 and if it also breaks, the price may further fall.
What can XRP recover?
Grow XRP again. For that, 50 days simple moving average (SMA) will have to be re -acquired at $ 2.73. If this happens, a rally up to $ 3.40 can be seen. Many analysts believe that if the XRP crosses the major resistance level, then XRP Value $ 10 Can go up to
If the bearish remains continues, the price may also decline further. So far, the market has been totaling $ 57.94 million XRP liquidation, with a $ 53.58 million long position to end. This makes it clear that bulls (who were expecting the price to rise) were trapped in this promote-off.
Conclusion
Overall, the next step of the XRP will depend on whether it can maintain its important support levels or the selling pressure will pull it down further. At the moment, traders are carefully looking at whether XRP can return or there will be more loss.
