XRP experienced a significant decline of 5% as it fell to $2.18 following a failed attempt to breach the critical resistance level of $2.30. This downturn was primarily driven by profit-taking among investors, overshadowing the buying enthusiasm that had previously supported the cryptocurrency.
XRP Market Overview
Current market conditions for XRP indicate a broader bearish trend affecting the cryptocurrency landscape. Reports suggest that risk sentiment is waning, impacting trading behaviors across major digital assets. According to analyst Alex Kuptsikevich from FxPro, the current situation reflects a “short-term rebound within a larger decline.” This implies that unless the momentum improves, deeper retracements are likely.
Recent ETF Activity
The launch of the first U.S. spot XRP ETF, known as XRPC, on November 13 attracted significant attention. It recorded an impressive $58.6 million in trading volume on its opening day. However, despite this success, the ETF has not led to sustained upward movement in spot markets.
Liquidation Statistics
Within the last 24 hours, XRP experienced approximately $28 million worth of liquidations. Most of this activity—around $25 million—stemmed from long positions, indicating that many traders were forced to exit their trades as the price struggled against resistance. This aggressive unwinding reflects an overall cautious sentiment in the market.
Price Action and Trading Insights
The recent price action showed XRP dropping to $2.18, primarily due to a failed breakout attempt at $2.30. The trading day was marked by volatility, with a notable 342% spike in volume around 14:00 UTC, resulting in the trading of 237 million tokens.
- Key support level: $2.20
- Resistance zone: $2.30 – $2.40
- Potential rapid decline if the price falls below $2.18: target $2.02 – $1.98
Attempts to stabilize above $2.22 were thwarted by renewed selling pressure. Although there was a brief rally back to $2.27 between 16:50 and 17:00 UTC, it was insufficient to maintain upward momentum.
Key Levels to Watch
For traders, the $2.20 level is critical. Holding this level could pave the way for another attempt at reaching the $2.30 to $2.40 range. Failure to maintain this support may lead to a swift decline toward the $2.02–$1.98 area.
The direction of XRP’s price will largely depend on volume confirmation. Rising buying volume at $2.20 would indicate accumulation. Conversely, low-volume rebounds would suggest vulnerability to further declines. In the short term, continued inflows into the XRPC ETF will be crucial for enhancing liquidity in the spot market.
In summary, XRP’s current status reflects a complex interplay of resistance levels and market sentiment, with traders advised to stay alert to potential shifts in risk appetite across the broader crypto market.
