XRP Price Drops Below $2 as Death Cross Hits the Market

XRP, the native token of Ripple, is under pressure after dropping below the $2 key target following the appearance of a death cross on its chart. This comes just two days after the token had a golden cross, which is usually a positive sign.

A death cross happens when a short-term price average goes below a long-term average. This often makes traders sell quickly because it can signal more selling momentum. Despite the price decline, trading activity is up 193% in the last 24 hours to about $3.86 billion in volume. This mix of rising volume and falling price suggests increased selling activity. 

At the time of writing, XRP is trading for $1.97, down 3.42% on the day. The token has lost 5% of its value in the last seven days, dropping from a weekly high of $2.1, which it was at on January 14, according to CoinMarketCap.

$40 million liquidated in 24 hours

The price fall is caused by traders who are closing their positions. In fact, the drop wiped out billions in a long position. According to Coinglass, traders who bet on the price going up were hit hard, with nearly $40 million liquidated. 

Long positions, which are bets that the price will go up, were hit hard, with nearly $2 billion liquidated in the last 24 hours, while short positions amounted to $1.47 million. About $40.76 million was liquidated in total.

In addition, XRP’s open interest, which had surged by 12% over the weekend with $1.4 billion committed on future price expectations, was effectively nullified by the sudden shift. Now, it is down by 9.81% to $3.57 billion.

The broader crypto market also contributed to the sell-off. During early trading hours today, the overall market dropped as fears of new U.S. tariffs on European goods triggered anxiety across the market. Bitcoin, the largest cryptocurrency in the market, saw its price drop from above $95K to $93K, while Ethereum’s price is down by 3.44% today to $3,216. In short, overall market valuation is down by 2.55% to $3.14 trillion.

The fear also affected the stock markets. U.S. equity-index futures, including Nasdaq 100 and European futures, dropped sharply, while safe-haven assets like gold and silver went up. 

What’s next for XRP?

The crypto market started the year on a positive note after a sluggish end to 2025, but recent market events have quickly erased these early gains. XRP specifically marked 12 of 13 days in losses since January 5, dropping from a five-day high of $2.41 on January 5.

On the 4-hour chart via TradingView, the price went as low as $1.85 during earlier trading hours but was quickly rejected from a support level at the same range. The range also acts as a demand zone, considering the fact that the token recently broke out of a bullish flag pattern earlier this month, which confirmed that the market was really ready for a rally. A retest of the range was expected, which the price has nicely respected.

If the current buying momentum from this demand zone remains strong, a surge back to the $2 key level is expected. Moreover, the Relative Strength Index (RSI) is currently at 39, while the moving average is at 37. This was after the price entered an oversold condition, which suggested that the buyers could soon take over the market.

Also Read: NYSE Prepares Tokenized Platform As 24/7 Trading Moves Closer

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