Analysis: XRP in Trouble, Is a Major Drop Approaching?

Source: CritpoTendencia Original Title: Analysis: XRP in Trouble, Is a Bigger Drop Approaching? Original Link: The price of XRP, like most of the top 10 major cryptocurrencies, is experiencing daily losses and is still far from recovering from the drop over the past seven days.

At the time of writing, XRP is trading at $2.12, with daily losses of 3.3%, weekly losses of 11.4%, and monthly losses of 13.9%. This is a clearly bearish outlook, similar to the rest of the crypto market.

What’s Behind the Current Decline in XRP?

For months now, there have been virtually no sustained inflows into XRP. On November 19, according to Coinglass, there was another net outflow of $1.33 million, a behavior consistent with recent weeks.

This pattern reflects increased risk aversion, visible both in speculative tech stocks and in the crypto asset market. It relates to several factors:

More limited liquidity due to fears of overspending on AI projects, economic data pointing to greater instability, and a more restrictive stance from the Federal Reserve. Together, these create an unfavorable environment for bullish momentum, maintaining downward pressure on the market.

Currently, investors are watching several events that could influence the coming weeks: Nvidia’s earnings, the FOMC minutes, and nonfarm payroll figures—all considered key indicators for anticipating future moves.

According to analyst Ali Martinez, recent macroeconomic pressure and falling prices have triggered notable reactions among investors. He also shared an important projection for XRP:

Below $2.15, the next key levels for XRP are: $1.91 and $1.73

Analysis of XRP Charts: Key Levels to Watch

The chart shows that the 50-day EMA fell below the 200-day EMA. This crossover, known as the death cross, suggests that medium-term selling pressure outweighs long-term accumulation. Additionally, the price continues to move within a medium-term bearish channel.

Resistance levels to monitor:

• $2.21: 200 EMA level and immediate resistance. This is the first target to try to reverse the bearish trend.
• $2.30: intermediate resistance and the November 17 high. It is the strongest short-term level.
• $2.41: area where the lower moving averages crossed below the higher ones (death cross), leading to current levels.

Support levels to watch:

• $2.10: immediate support and double bottom, the strongest in the short term.
• $2.00: if the previous support fails, this would be the next level to watch and has psychological significance.
• $1.85: if the previous level breaks, the price could drop toward this area.

The RSI at 35 points indicates that bearish control continues and further pullbacks may still occur.

Key Data to Consider

According to Lookonchain, a trader recently opened a short position in XRP worth $27 million, using 20x leverage.

Santiment data shows that in just 48 hours, about 200 million XRP were sold. This selling pressure came from large holders with between one and ten million tokens.

Although the price of XRP remains above relevant historical levels, about 41.5% of its supply (around 26.5 billion tokens) is currently at a loss. This reflects a significant deterioration in the token’s overall profitability.

Additionally, the proportion of holders in profit fell to 58.5%, the lowest level since last November, when XRP was trading near $0.53. This drop in profitability, coupled with increased trading volume, suggests a market under strong pressure and clearly dominated by bearish sentiment.