XRP fell by 5% due to intense selling pressure in the market:
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XRP drops 5% amid intense selling pressure: What is happening?
XRP experienced a sharp drop of nearly 5% in recent hours, amid strong selling pressures that dominated the market. This decline comes at a time when the digital market is witnessing increasing volatility due to geopolitical events and regulatory trends, in addition to noticeable activity from whales and large investors.
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Reasons for the sudden drop
1. High-Volume Selling Pressure:
Trading data showed that there was an intense selling wave on XRP on major platforms like Binance and Coinbase, leading to the breaking of important support levels around $0.50.
2. Whale behavior:
Monitoring major wallets revealed that some whales moved large amounts of XRP to exchanges, often interpreted as an intention to sell rather than for storage.
3. General market environment:
This decline comes amid a general atmosphere of concern in the cryptocurrency market, driven by delayed regulatory decisions such as the SEC's postponement of approving XRP and Solana ETFs.
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Impact on the market
Decline in market value:
XRP lost a significant portion of its market value, causing it to fall in the ranking of cryptocurrencies by total value.
Liquidation of derivative positions:
With the price decline, a number of long positions in futures contracts were liquidated, contributing to deepening the drop.
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Reactions and analyses
Technical analysts pointed out that breaking the support level at $0.50 could open the door for further declines towards $0.44 or even $0.40 if selling pressures continue.
Institutional investors are hesitating to make new decisions while waiting for clarity on the regulatory picture, especially regarding XRP-linked ETFs.
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Does this represent a buying opportunity?
Despite the sharp drop, some analysts believe that current prices may represent a good entry point, especially if the price stabilizes at a strong support level and signs of a technical rebound appear. However, the primary recommendation remains caution, given the prevailing uncertainty in the market currently.
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Summary
The 5% drop in XRP was a natural result of intense selling pressure in a volatile environment. Currently, investors should focus on support and resistance levels, carefully monitor technical indicators, and avoid rushing into emotionally driven decisions.
