XRP Analysis: XRP Drops to $2.34 After Highs, $1.96 Support in Focus

XRP has seen a decline after reaching its yearly high on December 3. Despite the recent downturn, traders remain optimistic about a potential rebound, with key support levels and technical indicators in focus.

As of press time, XRP was priced at $2.34, reflecting a 1.11% drop in the past 24 hours. Over the past week, however, the token has experienced a 45.31% price increase. Its trading volume for the last 24 hours stands at $14.37 billion, while the current market capitalization is $133.31 billion, supported by a circulating supply of 57 billion XRP.

The drop in XRP’s price has also been accompanied by liquidations of leveraged positions. Over the last 24 hours, $55.26 million in liquidations were recorded, with $42.3 million attributed to long positions and $12.96 million to shorts. Traders are closely monitoring XRP’s performance as the market navigates heightened volatility.

Key Support Levels and Technical Indicators

XRP’s recent price decline has brought the 14-day Exponential Moving Average (EMA) into focus, as the token struggles to maintain momentum above the $2.58 level. 

Analysts suggest that if the price falls below the 14-day EMA, support could be found near $1.96, which aligns with the 0.382 Fibonacci retracement level.

The Relative Strength Index (RSI) indicates waning bullish momentum, as it trends downward from overbought levels. A daily close below the $1.96 support could lead to further losses, with the next support target around $1.35. 

Source: TradingView

Market participants are watching for key technical signals to assess whether XRP can maintain its current price range or move lower.

Institutional Adoption Supports Long-Term Confidence

In a development signaling growing institutional interest, Nasdaq-listed Worksport has announced plans to integrate Bitcoin and XRP into its corporate treasury. The tonneau cover manufacturer disclosed that it will allocate up to $5 million to acquire these cryptos, citing confidence in their long-term value and potential to improve transaction efficiency.

This move follows a broader trend of corporate adoption of digital assets, as firms explore ways to hedge against inflation and enhance operational efficiency. Worksport’s decision highlights the increasing role of cryptos in mainstream business strategies.

Bitcoin Dominance and XRP’s Leveraged Positions

Bitcoin’s market dominance, currently at 55.28%, has shown a slight decline but remains a factor influencing altcoin performance, including XRP. Analysts warn that if Bitcoin dominance rises to 60-70%, it could prompt a shift in capital back to Bitcoin, potentially pressuring altcoin markets.

At the same time, open interest in XRP has reached new highs, driven by an increase in leveraged positions. While some traders are adding to long positions, others caution that continued price retracement could trigger further liquidations, increasing market risk.

Market watchers also note that Ripple’s delay in launching its RLUSD stablecoin has contributed to uncertainty. XRP recently lost its position as the third-largest crypto by market cap, now ranking below USDT.

FAQs:

What is the current price of XRP, and how has it performed recently?

XRP is currently priced at $2.34, reflecting a 1.11% drop in the last 24 hours but a 45.31% increase over the past week.

What is the key support level traders are monitoring for XRP?

Traders are closely watching the $1.96 support level, which aligns with the 0.382 Fibonacci retracement level and could prevent further declines.

How much has been liquidated in XRP positions recently?

Over the last 24 hours, $55.26 million in XRP liquidations occurred, with $42.3 million in long positions and $12.96 million in shorts.