XRP dropped below $2 as the broader crypto market experienced heightened risk-off sentiment. This decline follows a series of market shifts, leaving investors uncertain about the token's future.
Negative Market Sentiment
On Monday, XRP saw a 10% drop, trading around $1.96. Predictions showed an 81% chance of XRP falling below $2. Despite this, XRP’s 30-day Market Value to Realized Value (MVRV) Ratio suggests a possible price bottom.
Currently XRP Price trading at $2.36 as per Coinpedia Market data.
Bearish Sentiment Drives the Decline
Odds of XRP dropping below $2 rose from 62% to 81%, while the likelihood of reaching a new all-time high of $3.50 fell from 51% to 7%. XRP quickly breached the $2 level as market sentiment worsened, reflected in the Fear and Greed Index, which dropped to 20.
Disappointment from Trump’s Crypto Summit
At the White House Crypto Summit, President Trump announced plans for a Bitcoin reserve but did not include XRP in the digital asset stockpile. This disappointed investors, who had hoped for government investment in XRP.
MVRV Ratio Suggests Potential Recovery
Despite the bearish sentiment, XRP’s 30-day MVRV Ratio dropped to 16%, signaling a possible price reversal. Historically, XRP tends to recover when the ratio falls below 10%.
XRP Faces Pressure at $2 Support
XRP saw $36.01 million in futures liquidations in the past 24 hours. Its price dropped into a descending channel, falling below $2. If it fails to recover, the lower boundary of the channel could provide support for a bounce.
Technical Indicators Show Bearish Trends
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are below their moving averages, indicating continued bearish pressure. However, the Stochastic Oscillator is in the oversold region, suggesting a potential reversal.
Outlook for XRP
XRP remains under pressure as it struggles to reclaim support at $2.72. The outlook will depend on whether it can break through the descending channel and regain upward momentum.
