Why XRP is Going Down: Key Factors Behind the Recent Price Drop

Published:January 08, 2025 Updated: March 30, 2025
Author: Lokesh Gupta
Why XRP is Going Down: Key Factors Behind the Recent Price Drop

Why XRP is Going Down Today: What’s Next for Ripple and Its Investors?

XRP Price Drops 5.35% After Rejection at $2.50 Resistance: What's Next

The price of XRP faced a sharp 5.35% drop following rejection at the $2.50 resistance level and the upper boundary of a Pennant pattern. On-chain data reveals increasing selling pressure from long-term XRP investors ahead of significant market events, including Donald Trump’s inauguration.

Bearish Market Sentiment Fueled by Economic Data

The latest JOLTS (Job Openings and Labor Turnover Survey) report revealed 8.1 million job openings in November, exceeding the 7.7 million forecast and rising from October's 7.8 million. This unexpected rise has contributed to bearish sentiment across the market.

XRP Liquidations Highlight Key Leverage Levels

In the last 24 hours, XRP liquidations totaled $16.84 million, with $12.93 million coming from long positions and $3.91 million from shorts.

XRP Liquidations

The XRP Exchange Liquidation Map identifies crucial levels at $2.255 on the downside and $2.378 on the upside.

XRP Exchange Liquidation Map

  • A price increase to $2.378 could liquidate approximately $47.66 million in short positions.

  • Conversely, a decline to $2.255 could result in liquidations of around $15.53 million in long positions.

These levels indicate high trader leverage, presenting significant opportunities for market volatility.

Technical Outlook: Key Decision Point for XRP

XRP is approaching a pivotal moment on the XRP/USD daily chart. A breakout above the resistance could trigger a strong bullish rally, with targets in the $2.80–$2.90 range. However, if the price breaks below the lower boundary and psychological support, it might signal a bearish move toward the $1.50 level.

What's Next for XRP?

The rejection at the $2.50 resistance and the upper boundary of the Pennant pattern suggests XRP could retest the lower boundary and psychological support. Traders should closely monitor these key levels to anticipate the next significant price move.

Also read: Time Farm Daily Combo Question 09 January 2025
Lokesh Gupta
Lokesh Gupta

Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.

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