XRP declined 2.17% over the past 24 hours, lagging behind the broader cryptocurrency market, which posted a more modest 1.18% loss. The underperformance stems from a confluence of technical and macro-level pressures that have collectively weighed on sentiment and price action.
A significant driver of the sell-off was a wave of leverage unwinding in the derivatives market. As XRP dipped below the $2.10 threshold, it triggered a cascade of stop-loss orders, resulting in $6.57 million in long positions being liquidated—more than five times the value of short liquidations during the same period. This sharp deleveraging amplified downward momentum, especially as futures open interest had recently surged by 18.68%, indicating an overcrowded long bias that proved fragile under even minor price pressure.
Compounding the bearish dynamics, U.S. spot XRP ETFs recorded their first net outflow in over a month. According to data from SoSoValue, investors withdrew $40.8 million—the first reversal after 36 consecutive days of inflows that had cumulatively totaled $1.2 billion since November. This shift suggests institutional buyers may be taking a breather or reassessing their exposure, thereby removing a key source of buy-side support that had previously helped buoy the asset.
Meanwhile, broader market rotation has further disadvantaged altcoins like XRP. Bitcoin’s market dominance climbed by 0.15 percentage points to 59.12%, reflecting a flight of capital toward the flagship cryptocurrency amid neutral risk sentiment—as measured by a Fear & Greed Index reading of 50. The Altcoin Season Index plummeted 11.11% to 24, firmly placing the market in “Bitcoin Season” territory. In this environment, XRP’s relative weakness becomes more pronounced, as speculative flows retreat from riskier assets.
Looking ahead, the $2.00 level looms as a critical psychological and technical support. A decisive break below this mark could invite further selling, particularly if leveraged positions remain elevated. Market participants will be closely watching whether XRP ETFs can reignite strong inflows—ideally surpassing $20 million per day—to restore confidence and provide a floor for prices.
Source:: The $2.00 Test: Can XRP Weather Its Triple Threat of Bearish Signals?