XRP has fallen below the $3 mark once again, causing frustration among its community as it fails to keep pace with the general market trends. The token is currently trading at approximately $2.90, representing a decline of over 4% in the last 24 hours, and holds a market capitalization of around $173 billion.
Despite having made headlines with the historic launch of a U.S. spot XRP ETF and Ripple’s strengthening partnership with Spain’s BBVA bank, XRP has struggled to maintain any upward momentum. Analysts suggest that the sluggish performance of XRP can no longer be solely attributed to the ongoing U.S. Securities and Exchange Commission (SEC) lawsuit. With that case now resolved, focus has shifted to underlying market dynamics.
The debut of the XRP ETF had generated a substantial $37 million in trading volume on its first day; however, it also prompted a “sell the news” reaction, leading many institutional investors to liquidate their positions and create considerable selling pressure in the market. The situation was further exacerbated by nearly $79 million in liquidations for XRP traders over the past 24 hours, predominantly affecting long positions. This wave of forced selling has led to a decline in prices, impacting confidence among retail investors.
Additionally, the broader cryptocurrency market saw a 4% decline, resulting in billions of dollars being wiped off the market capitalization of altcoins. Major assets like Ethereum (ETH) also experienced significant losses, contributing to XRP’s downturn.
Currently, XRP is attempting to hold support around the $2.80 mark. Traders have cautioned that falling below this level could expose the token to a range between $2.50 and $2.60. Conversely, bullish investors need to reclaim the range of $3.10 to $3.20 to revive momentum and possibly aim for a retest of the all-time high of $3.65.
Market sentiment remains mixed. Some analysts, like BarriC, posit that XRP could potentially surge dramatically by following historical patterns, even suggesting a speculative price target of $300 by 2026. Others exhibit skepticism, citing ongoing selling pressure and increasing regulatory compliance demands for altcoin ETFs. For now, XRP holders face a critical juncture: to defend current price levels or face the risk of further declines as the broader selloff in the altcoin market continues.
