Ripple’s recent confirmation of its plans to integrate the RLUSD stablecoin into Ripple Payments was overshadowed by the broader cryptocurrency market downturn. As XRP struggles to maintain key support levels, traders and investors are closely monitoring whether the token can hold above $2 or risk a deeper decline.
XRP’s Recent Price Drop and Liquidations Over the past 24 hours, XRP experienced a 4% decline, leading to $18 million in futures liquidations. Among these liquidations, $11 million were long positions, while $7 million were shorts. The imbalance suggests that bullish traders were caught off guard as price action failed to hold key levels.
Additionally, the market-wide impact of U.S. President Donald Trump’s announcement of reciprocal tariffs has accelerated losses across the cryptocurrency sector. As a result, the $2 support level has become a critical line in the sand for XRP traders. If this level, along with the 200-day Simple Moving Average (SMA), is breached, the token could sink further toward the $1.50 support zone.
On-Chain Metrics Signal Mixed Sentiment XRP’s on-chain indicators present conflicting signals, making price predictions challenging. The Market Value to Realized Value (MVRV) ratio has dipped below its 200-day moving average—a historically bearish signal that suggests XRP may still be overvalued relative to investor costs.
However, despite this bearish indicator, whale accumulation has increased, suggesting that large investors are positioning for a potential long-term rise. Historically, whale accumulation has preceded price rebounds, indicating a possible divergence between short-term price action and long-term investor sentiment.
At present, XRP’s market value is trading below its realized value, which is often interpreted as a bearish signal. This trend typically leads to periods of consolidation or further price corrections. However, market dynamics remain highly fluid, and external factors—such as regulatory developments, macroeconomic trends, and investor sentiment—will continue to play a significant role in XRP’s trajectory.
Potential Market Scenarios for XRP Given XRP’s current price structure, traders should consider the following scenarios:
- Bullish Reversal: If XRP maintains the $2 support and buying pressure increases, a potential rebound toward $2.50 and beyond could unfold. A decisive move above this level would confirm bullish momentum.
- Bearish Breakdown: A break below $2 and the 200-day SMA could trigger additional downside pressure, potentially sending XRP to the $1.50 region. This scenario could also lead to increased volatility and additional long liquidations.
- Extended Consolidation: If XRP remains range-bound between $2.00 and $2.50, traders may see prolonged price stagnation until a catalyst emerges.
Market Sentiment and Investor Outlook Despite short-term bearish signals, some investors remain optimistic about XRP’s long-term potential, particularly given Ripple’s ongoing expansion into real-world payment solutions. However, even the most bullish expectations could be undermined if XRP enters a high-volatility zone due to a breakdown below its current support.
As the market already anticipates this possibility, the key question remains whether bullish investors have the tenacity and capital to prevent a steep decline.
XRP finds itself at a critical juncture, with its $2 support level serving as a make-or-break moment for traders. While whale accumulation signals confidence in XRP’s long-term potential, short-term bearish indicators and external market forces suggest increased caution is warranted. Whether XRP can withstand the ongoing market volatility or succumb to further downside remains to be seen, making this a crucial moment for traders and investors alike.
