XRP Price Plunges to Key Support: Is a Major Reversal Still Possible?

TLDR

XRP price dropped by 6.49% following a broader crypto market sell-off. Bitcoin and Ethereum also declined sharply, triggering mass liquidations across assets. XRP saw a $140 million drop in Open Interest over the past 17 hours. The decline ended an 18-day range and formed a bearish pattern with lower highs and lows. XRP long positions worth $23 million were liquidated during the 7% intraday crash.

XRP price plunged sharply today as the broader crypto market witnessed $657 million in liquidations over the past 24 hours. XRP recorded a 6.49% decline, moving in tandem with Bitcoin and Ethereum, which dropped 3.89% and 4.20%, respectively. This XRP crash was triggered by a rejection at a major Bitcoin resistance level, accelerating the sell-off across digital assets.

XRP Faces High Volatility Amid Technical Breakdown

XRP price has fallen 7% in the past 12 hours, ending an 18-day consolidation phase marked by tightening price action. This steep drop caused $23 million in long liquidations, clearing excessive leverage and disrupting bullish momentum. A pattern of lower highs and lower lows now defines XRP’s short-term trend.

The falling wedge structure that had formed typically signals a breakout, but the XRP crash invalidated the expected bullish reversal. XRP’s correlation with Bitcoin intensified the downside pressure as market sentiment weakened further. This synchronized move reflects how Bitcoin’s direction heavily impacts XRP during high-volatility phases.

Open Interest in XRP dropped by $140 million within 17 hours, signaling an exit of overleveraged positions from the market. The flush-out in OI created short-term instability, yet it could offer a reset for price discovery. XRP now hovers around a key support near $2.139, where demand could stabilize prices again.

XRP:USDT 1-hour Chart vs. Open Interest

Bitcoin’s Rejection Triggers Wider Sell-Off

Bitcoin’s failure to hold above critical resistance levels has led to cascading effects across correlated assets including XRP. The current downturn followed a rejection near technical resistance, erasing previous bullish setups. As Bitcoin remains weak, correlated coins like XRP remain exposed to further losses.

BTC’s bearish momentum suggests a possible retest of the $100,000 mark if it fails to sustain above $105,000. This would likely trigger further downside for XRP, especially if key support levels break. Traders should monitor Bitcoin’s behavior, as XRP price movements remain tightly linked.

Bitcoin’s continued weakness limits any immediate recovery in XRP, delaying potential bullish reversals. While XRP trades near historical support, the lack of Bitcoin strength may stall any upside attempt. Therefore, a further decline in BTC could drive XRP below the $2 psychological level.

XRP Price Tests Strong Support Zone After Crash

XRP price now retests the $2.139 support, which previously acted as a springboard for an 18% rally on May 4. This level represents the highest traded volume of that day, highlighting its importance in the current context. The area could absorb selling pressure and offer a temporary floor.

XRP:USDT 1-Hour Chart

If XRP holds this zone, it may signal bottom formation and limit downside risks in the near term. However, broader market weakness remains a threat unless conditions improve for Bitcoin. Without bullish confirmation from BTC, XRP may continue to drift lower despite reaching strong support.

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