Ripple’s XRP is facing difficulty staying above the $2 mark after a steep decline over the weekend. March has been a challenging month for XRP, as it struggles to maintain stability.
On Sunday, XRP dropped to a low of $2.08, marking a 22% decline in just two days. Buyers have since stepped in, pushing the price back up to $2.17, but the fight to regain momentum is far from over.
Why is XRP Dropping?
The broader crypto market is under pressure due to concerns triggered by the latest U.S. jobs report. Rising bond yields and inflation fears are driving investors toward safer assets, leading to sell-offs in riskier markets like crypto.
Bitcoin, the largest cryptocurrency, has also taken a hit, falling 20% to trade at $80,000. XRP is feeling the impact of this uncertainty as well.
Adding to the pressure, the 10-year U.S. Treasury yield has surged to 4.3%, its highest level since November 2023. This signals that institutional investors are pulling out of speculative assets, including XRP.
To make matters worse, global trade tensions are increasing uncertainty, which could lead to further volatility in the crypto market. If these conditions persist, XRP could face more downward pressure in the coming weeks.
Bears in Control: $270M in Short Bets at $2.70
Market data suggests that bearish sentiment is dominating XRP’s derivatives market. According to Coinglass:
$375 million has been placed in short positions.
Only $125 million has been placed in long positions.
This means about 77% of leveraged traders are betting against XRP.
A key level to watch is $2.70, where $297 million worth of short positions are stacked. If XRP approaches this level, short sellers may try to push it back down, increasing the risk of further declines. A failure to break past this resistance could invite more bearish pressure, making recovery even more challenging.
XRP Price Forecast: More Downside or a Rebound?
XRP is currently struggling to stay above $2.18 after its recent 20% drop. If buyers fail to regain control, another dip could be imminent.
Key Levels to Watch:
Resistance at $2.60 – A breakout above this level could signal a bullish reversal.
Support at $1.95 – If selling pressure continues, this could be the next major downside target.
RSI at 35 – Approaching oversold territory, which could trigger more selling.
ADX at 32 – Indicates high volatility, with bearish momentum still dominant.
If XRP fails to reclaim $2.47 soon, another leg downward is likely. However, a breakout above $2.70 could trigger a short squeeze, potentially driving the price toward $2.99.
For now, the market remains uncertain, and traders should proceed with caution.