The market capitulates according to the classic scheme: a sharp decline in the underlying asset pulls down second-tier coins, where liquidity is thinner and volatility is higher. Against this background, it is difficult to maintain round levels because a mass of stops and pending orders traditionally accumulates around them. When the downward impulse coincides with a reduction in the depth of the book, the price passes such marks faster than participants can restructure their risk. For $XRP this means an increased probability of testing levels below $2.
Technically, the picture looks vulnerable: every bounce meets dense resistance, and local lows are declining. In such phases, the round price ceases to be a support and turns into a magnet, attracting movement. If there is no consolidation above the broken zones, the market continues to seek balance lower, where sellers are only willing to concede initiative on clearly increased volumes and a series of higher lows. Until this is visible, the scenario with a spike at $2 remains the baseline.
The capital flow factor also plays against XRP. In a weak market, money goes into the most liquid assets or into cash, the risk premium expands, and the demand for altcoins becomes episodic. During such periods, even neutral news cannot reverse the trend because the strategy of selling on the rise prevails. To break the dynamics, several conditions need to align: stabilization of the external background, clear signs of absorption of supply, and improvement of market structure without spikes in funding and position distortions.
The practical conclusion is simple: until clear signals of strength appear, betting on a sustainable long position in XRP is risky. Consolidation below $2 will open a window for tests of lower ranges, while only a quick return above the level with confirmed demand will give a chance for recovery. Discipline is more important than emotions: position size, strict stop losses, absence of excessive leverage, and readiness to work according to the scenario, not hope. The trend is currently down, and the investor's task is to preserve capital until the market shows that buyers have truly returned.
