XRP Faces Massive Selloff—Will It Recover?
Ripple's XRP is facing challenges as it battles to maintain its value above the $2 mark following a sharp decline over the weekend. March has proven to be a tough month for the cryptocurrency, with prices struggling to hold steady.
XRP Drops 22% in Two Days
On Sunday, XRP hit a low of $2.08, marking a 22% drop in just two days. While buyers have stepped in to halt the freefall, pushing prices back to $2.17, the battle for stabilization is far from over.
Why is XRP Price Dropping?
The crypto market is under pressure due to economic factors, particularly concerns surrounding the latest U.S. jobs report. Rising bond yields and inflation fears are prompting investors to seek safer investments, pulling money out of riskier assets like crypto.
Bitcoin, the largest cryptocurrency, has also experienced a 20% decline, now trading at $80,000, contributing to the negative sentiment surrounding XRP.
Economic Factors Weighing on Crypto Market
The 10-year U.S. Treasury yield has climbed to 4.3%, its highest level since November 2023, signaling that major investors are pulling out of riskier assets such as XRP. Additionally, growing global trade tensions have added to the uncertainty, which could lead to further volatility in the coming weeks, making it even more challenging for XRP to recover.
Bears in Control: Short Bets Surging
Market data reveals that XRP's derivative traders are overwhelmingly bearish. Over the past month, $375 million has been placed in short positions, while only $125 million has been placed in long positions. This means around 77% of leveraged traders are betting against XRP.
Key Resistance Level: $2.70
A critical level to watch for XRP is $2.70. Market data shows that there are $297 million worth of short positions placed at this level. If XRP approaches this price, short sellers may try to push it back down, triggering liquidations and adding pressure to any potential recovery.
What’s Next for XRP?
As the crypto market faces increasing uncertainty, the future of XRP hangs in the balance. Will it overcome the pressure and find stability, or will it continue to face downward momentum? To get an in-depth look at what’s ahead for XRP, don’t miss our XRP Price Prediction.
https://coinpedia.org/price-prediction/xrp-ripple-price-prediction/