The cryptocurrency market has been under intense pressure, and XRP is feeling the heat. In just 24 hours, XRP’s market capitalization plunged by over $10 billion, marking one of the sharpest declines among major digital assets.
XRP’s Market Capitalization Drops Sharply
As of the latest data, XRP’s market cap stands at $123.15 billion, down from $134 billion the day before. This represents a staggering loss of $10.85 billion, making it one of the biggest losers in terms of market cap within the crypto space. XRP’s price also fell significantly, dropping nearly 7% in 24 hours to $2.03, effectively erasing much of the momentum it had gained earlier in the week. Over a weekly timeframe, XRP is down roughly 1%.
Technical Indicators Show Bearish Signals
From a technical perspective, XRP’s current performance suggests a bearish trend. The 50-day simple moving average (SMA) is at $2.36, and the 200-day SMA sits at $2.65. This leaves XRP trading 13.6% below its 50-day SMA and 22.9% below its 200-day SMA, signaling downward pressure. Meanwhile, XRP’s 14-day Relative Strength Index (RSI) is at 45.8, suggesting neutral conditions without immediate oversold pressure but pointing to potential short-term market consolidation.
Implications of Broader Market Trends
The broader cryptocurrency market downturn has been a significant factor in XRP’s sharp decline. Other major assets, led by Bitcoin (BTC), have also seen billions wiped from their valuations. One of the catalysts contributing to this downturn is a historic move in Japan’s bond market, where yields on 2-year Japanese Government Bonds breached the 1% threshold for the first time since 2008, signaling expectations of an interest-rate hike from the Bank of Japan. This has led to broader risk-asset selloffs, including cryptocurrency.
Institutional Confidence Despite Price Challenges
Interestingly, XRP has witnessed institutional inflows despite its bearish price action. Spot ETF inflows for XRP reached $666.6 million, mainly driven by products like 21Shares’ TOXR. Additionally, XRP exchange supplies have dropped by 45% in the last 60 days, signaling ongoing accumulation by long-term holders. Large holders also added 150 million XRP tokens since November 25, reaffirming institutional confidence despite current market conditions.
What’s Next for XRP?
As XRP continues to trade in tandem with broader market trends, its price trajectory will likely depend on how top assets like Bitcoin perform during this market downturn. For now, heavy derivatives unwinds and significant spot selling have left XRP vulnerable to breaking below its $2 support level.
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