The sudden liquidation spree in crypto market cleans a bearish sweep across top cryptocurrencies. Amid the falling coins, XRP nears a crucial support trendline and a breakdown could trigger a major crash.
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
With a new bearish turn of events in the crypto market, Bitcoin BTC $87 132 24h volatility: 0.2% Market cap: $1.73 T Vol. 24h: $23.46 B and altcoins are facing a massive downfall. Among the top altcoins, XRP XRP $2.32 24h volatility: 1.8% Market cap: $135.21 B Vol. 24h: $2.36 B has dropped by 3.87% and is now putting pressure on its nearest support level.
Currently trading at a market value of $2.4765, XRP holds a market cap of $143 billion. With the third biggest cryptocurrency in the market, the short-term pullback has driven its 7-day returns to a negative 7.71%.
In the daily chart, the XRP price trend reveals a rising channel pattern. Currently, the altcoin price reveals a bearish fall within the channel amid the influence of a resistance trend line.
XRP Price Chart
XRP price has witnessed a similar pullback within the channel, which resulted in a massive steep correction. With the trendline breakout, the altcoin’s price rose nearly 45% to hit the overhead trendline.
Currently, the pullback from the second resistance trendline warns of a breakdown under the local support trendline. With an intraday fall with a new wave of supply, XRP has registered a 7-day low at $2.4437.
Furthermore, the momentum indicator signals a potential downfall. The MACD and signal lines are on the verge of providing a negative crossover, increasing the chances of a breakdown rally.
The downfall will likely test the S2 support pivot level near $1.5165. However, the two minor support levels at $2.27 and the $2 psychological mark could provide an early reversal.
On an optimistic side, if the broader market recovers, the resistance trendline breakout could recreate a 45% rally. The bullish comeback could reach the R1 pivot level near the $3.59 mark.
With the downfall in the XRP market price, the XRP ledger is witnessing a downfall in the number of active addresses. As per the data from The Block, the number of active addresses on the XRP ledger is down to 8.11K.
This marks a massive downfall compared to the 101.55K active addresses on December 3, 2024. Furthermore, the monthly volume on the XRP ledger has taken a massive hit.
With the transaction count of 42.7 billion in November, the transaction count is down to 14.6 billion in February. With the final week at hand, the downtrend in the transaction count continues for the last four months.
As the XRP ledger hits a potential slowdown, the market price is likely to witness a significant pullback.
EGRAG Crypto Analyst on X warns of a potential downfall in XRP. With the recent intraday downfall, XRP marks a breakdown of an ascending triangle pattern in the 12-hour price chart.
#XRP – Are We Ready for a Double Bottom Formation, or Is It a Fake-Out? 🤔
I’d love to hear your thoughts! To negate this bearish movement, #XRP needs to close above the $2.63 to $2.65 range.#XRPFamily! Together, we rise! 💪🌟 pic.twitter.com/j797Co9KP7
— EGRAG CRYPTO (@egragcrypto) February 24, 2025
This brings the local supply zone at play near the $2.4 mark. In case the XRP price breaks below the support zone, a downfall towards the $2 psychological mark seems inevitable.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
