XRP, the token of Ripple Labs, has declined in value, similar to Bitcoin (BTC) and Ethereum (ETH), amid market instability. Despite the drop, XRP is holding steady, suggesting its price may not fall further.
On March 20, 2025, a shift in market sentiment caused a sharp decline in overall crypto prices. XRP fell by 4% and reached a critical support level, influencing its future price movement.
Experts note that XRP’s price recently broke out from a bullish pattern but faced resistance. Due to market conditions, it has retested the breakout level at $2.40, aligning with the 200 EMA on the four-hour chart.
If the XRP price holds above $2.38, it could rebound and aim for $3.50. However, if it drops below $2.38 and closes a four-hour candle under this level, it may decline 13% to $2.05.
XRP is currently priced at $2.42, down 4% in the last 24 hours. Weak sentiment has led to a 20% drop in trading volume, as investors remain cautious.
Intraday traders are betting on the short side, aligning with the market trend, despite the bullish breakout and price retest, according to on-chain analytics firm Coinglass.
Data shows that traders are over-leveraged at $2.40, with $26 million in long positions. Meanwhile, at $2.54, traders have placed $67 million in short positions. This indicates a bearish sentiment, increasing the likelihood of price consolidation around this level.
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