XRP Price Plunges to 4-Week Low at $2: Will It Recover or Crash Further?

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The XRP price has sharply declined, hitting a four-week low below $2 amid a turbulent crypto market. Over the past week, the digital asset lost approximately 26% of its value, reflecting broader market distress that wiped out more than $700 billion in total market capitalization. With liquidations nearing $1 billion in 24 hours and investor sentiment turning cautious, questions are mounting: Is this a temporary dip or the start of a deeper correction?

Market Overview: A Week of Volatility

XRP is currently trading just under the $2 mark, slipping below this psychological threshold for the first time since early January. Despite the steep drop, trading volume has increased by 12%, reaching $7.63 billion — a sign that interest remains active even during downturns. Price fluctuations between $1.99 and $2.25 over the last 24 hours highlight ongoing uncertainty and tight-range consolidation.

While price action grabs headlines, underlying network metrics tell an equally important story. According to crypto analyst Ali Martinez, XRP’s active addresses have plummeted by 50% since December 2024 — from 202,250 down to just 101,169. This sharp decline suggests weakening on-chain engagement, which often precedes or amplifies price weakness.

👉 Discover how market sentiment impacts altcoin performance during downturns.

Key Technical Levels to Watch

XRP experienced a powerful rally between November and mid-January, gaining nearly 500%. However, momentum stalled as the price entered a consolidation phase between $2 and $2.50. To resume an upward trajectory, XRP must reclaim critical resistance levels.

The 50-day simple moving average (SMA) at $2.72 stands as a key resistance level. A sustained break above this point could signal renewed bullish momentum and attract fresh buying interest. Conversely, continued selling pressure may push XRP toward its next support zones:

If the price breaches $1.50, it could trigger further bearish sentiment and extended downside movement.

RSI Signals Oversold Conditions: A Glimmer of Hope?

Despite the grim outlook, there are early signs of potential stabilization. XRP’s Relative Strength Index (RSI) has recently entered oversold territory — typically defined as an RSI below 30. Historically, such conditions have preceded short-to-medium-term rebounds, especially when accompanied by rising volume or positive market catalysts.

An oversold RSI doesn’t guarantee an immediate recovery, but it does suggest that downward momentum may be exhausting itself. If macroeconomic conditions stabilize and investor confidence returns, XRP could see a technical bounce from current levels.

Broader Crypto Market Under Pressure

XRP’s struggles mirror wider turbulence across the cryptocurrency ecosystem. Bitcoin dropped below $80,000, while Ethereum hit a one-year low, adding to bearish sentiment. According to Coinglass data, nearly **$952 million** in leveraged positions were liquidated in the past 24 hours, including:

This wave of forced selling impacted over 226,501 traders globally, with the largest single liquidation — a $38 million BTC-USDT position — occurring on HTX. Such large-scale deleveraging often marks interim market bottoms, though volatility tends to persist in the short term.

👉 Explore real-time liquidation heatmaps and avoid high-risk trading zones.

What’s Driving the Sell-Off?

Several factors have contributed to the current market downturn:

These dynamics create a feedback loop where falling prices lead to more liquidations, which in turn fuel further declines.

Can XRP Bounce Back?

Recovery will depend on multiple factors:

  1. Restored network activity – Increased transactions and active addresses would signal renewed utility and investor interest.
  2. Positive regulatory developments – Clarity around XRP’s legal status could boost confidence.
  3. Broader market stabilization – A rebound in Bitcoin and Ethereum would likely lift XRP alongside other altcoins.
  4. Technical reaccumulation – Sustained trading above $2.30 could set the stage for a move toward $2.72 and beyond.

Historically, XRP has shown resilience after sharp corrections, often recovering strongly when market conditions improve.

👉 Learn how to identify accumulation patterns before the next breakout.

Frequently Asked Questions (FAQs)

Why did XRP drop below $2?
XRP fell below $2 due to strong selling pressure, declining on-chain activity, and widespread liquidations across the crypto market exceeding $950 million in 24 hours.

What is the significance of the RSI entering oversold territory?
An oversold RSI suggests that selling momentum may be exhausted, increasing the likelihood of a short-term price rebound — especially if buying interest returns.

How much XRP was liquidated recently?
Approximately $25.28 million worth of XRP positions were liquidated in the past 24 hours, part of a broader market-wide liquidation event totaling nearly $952 million.

What are the key support levels for XRP?
Key support levels are at $1.72 and $1.50. The latter aligns with the 200-day SMA and is considered a critical long-term floor.

Can XRP recover if Bitcoin stabilizes?
Yes. Given the high correlation between altcoins and Bitcoin, a stabilization or rebound in BTC price could provide favorable conditions for XRP to recover.

What should traders watch for next?
Traders should monitor whether XRP can hold above $1.70 and show signs of volume-backed consolidation. A close above $2.30 could signal building bullish momentum.

With technical indicators flashing caution and network fundamentals under scrutiny, XRP stands at a crossroads. While short-term pain is evident, history shows that periods of oversold pressure often precede strong comebacks — especially for assets with established ecosystems and use cases. As always, prudent risk management and close monitoring of key levels will be essential for navigating what comes next.

Keywords: XRP price, crypto market crash, RSI oversold, support levels, liquidation data, trading volume, moving average, active addresses