XRP Down 8% In 24 Hours: Could It Correct To $1?

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XRP's XRP/USD latest price decline has traders debating whether it will break key support and slide toward $1, despite recent optimism surrounding its addition to the crypto strategic reserve.  

CryptocurrencyPrice   Market Cap24-Hour Trend7-Day Trend
XRP XRP/USD$2.38 $138.3 billion-8.7%-7.8%
Bitcoin BTC/USD$83,619.00$1.65 trillion-7.4%-4.1%
Ethereum ETH/USD$2,078.67$250.6 billion-8.6%-14%

Trader Notes: In an X post on Tuesday, Bluntz Capital notes that XRP is showing weekly bearish divergences, similar to Bitcoin and Solana, prompting him to adopt a cautious approach.

CrediBULL Crypto pointed out that XRP is already down 25% from his previous profit-taking level after Bitcoin's rejection. He's planning to re-enter around $2, where he sees the best risk/reward setup.

Crypto chart analyst Ali Martinez warns that XRP is at risk of sharp correction to $1 since December 2024. Ali Martinez warns that XRP is forming a head and shoulders pattern on the daily chart, with $2 as a key support level.

This pattern is likely breaking with recent price drops leading to formation on right shoulder not implying a positive sign. He sees a potential 40% correction down to $1.

Statistics: After the crypto reserve announcement, Whale Alert data pointed to 500 million XRP, worth $1.4 billion, unlocked from escrow at Ripple on Monday.

Meanwhile, another 400 million XRP valued at $1.1 billion was unlocked from escrow at an unknown wallet on the same day.

Among many other significant whale movements, data also showed 50 million XRP transferred from an unknown wallet to Bitthumb and 25 million XRP shifted from Upbit to an unknown wallet.

On Tuesday, XRP worth $69.9 million was moved from an unknown wallet to Coinbase.

Coinglass data shows XRP long liquidations on Monday spiked $48.8 million, the highest level since Feb. 3.

Open interest also surged to highest levels since the same period. Over the past 24 hours, XRP liquidations stand at $56.8 million, while open interest dropped 16.9%.

Community News: On Sunday, Donald Trump hinted at creating a crypto strategic reserve to potentially include Bitcoin, Ethereum, Solana, Cardano, and XRP. This sparked speculation about XRP's long-term outlook, despite the recent price action.

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