XRP Slumps to $2.14 Amid Technical Weakness and Market Uncertainty

XRP fell sharply to $2.14, prompting concern among investors over potential further losses. The decline coincides with technical breakdowns, including a death cross and the breach of critical support at $2.20, signaling medium-term bearish momentum. Trading volumes have contracted to around Rs. 4.75 billion, reflecting declining market participation, while the proportion of XRP held at a profit has dropped to 58.5 %, the lowest since late 2024. Analysts warn that if support near $2.10 fails to hold, the token could retest lower levels around $1.77–$1.55. Broader crypto market pressures, whale activity, and macroeconomic uncertainty have amplified XRP’s vulnerability.

Technical Analysis Signals Bearish Momentum

XRP’s latest decline has been intensified by the formation of a death cross, where the 50-day moving average crosses below the 200-day moving average—a traditional signal of medium-term weakness.

The token broke through its $2.20 support, moving toward $2.14, suggesting that sellers are dominating short-term trading. The relative strength index (RSI) has also declined, indicating oversold conditions but not yet sufficient to signal a reversal.

Traders are closely monitoring whether XRP can reclaim key support levels, as failure to do so could trigger further downward pressure.

Liquidity and Supply-Side Pressures

Trading volume dropped significantly, with 24-hour volumes reaching roughly Rs. 4.75 billion. This contraction points to a thinning market where buying interest has diminished.

On-chain metrics show that only 58.5 % of XRP supply is currently in profit, implying that 41.5 % of holdings are underwater—a stress level not seen since late 2024. This combination of low liquidity and increasing unrealized losses raises the risk of accelerated selling pressure.

Macro and Market Influences

XRP’s fall is also influenced by broader market conditions. Regulatory uncertainties, macroeconomic volatility, and reduced risk appetite have heightened caution across crypto markets.

Large holders, or whales, have reportedly moved substantial amounts of XRP recently, further increasing supply-side stress. Despite the introduction of XRP-linked ETFs, inflows have not offset selling pressures, leaving the token vulnerable to continued declines.

Potential Downside and Support Levels

Analysts suggest that if XRP fails to maintain support near $2.10, further declines toward $1.77 and potentially $1.55 are plausible.

Upside recovery would require reclaiming resistance near $2.41 and reversing the death cross pattern. Until these technical conditions are met, bearish momentum is likely to persist, and short-term traders should remain cautious.

Conclusion

XRP’s drop to $2.14 reflects a convergence of technical weakness, thinning liquidity, and market uncertainty. With key support levels tested and a large proportion of supply in unrealized loss, the token remains vulnerable to further declines. Investors and traders are closely watching market indicators, on-chain metrics, and broader crypto trends for signs of stabilization or continued bearish momentum.