The XRP slump is getting worse. The token has fallen nearly 4% in the past 24 hours, outpacing Bitcoin and Ethereum in the latest crypto downturn. The drop comes amid a wave of risk-off sentiment triggered by macroeconomic uncertainty and fading hopes for near term rate cuts.
Trading volume spiked nearly 40% during the sell off, signaling heavy liquidation pressure. This steep fall has traders on edge, wondering if XRP can recover before slipping into deeper correction territory.
Analysts say the XRP slump is being driven by a combination of macroeconomic pressure, weak sentiment, and technical triggers. Strong economic data has pushed back expectations of interest rate cuts, leading investors to flee risky assets like crypto.
At the same time, lower institutional inflows have reduced liquidity, leaving XRP more vulnerable to sharp swings. To make matters worse, as price levels break key supports, stop loss orders and automated sell offs accelerate the decline, turning small dips into full blown sell waves.
Experts believe that the XRP rebound hinges on several market developments. A revival of capital inflows into the crypto sector could reignite buying interest, while a dovish shift from central banks or cooling inflation could trigger a wider market rally.
On the legal front, any regulatory clarity or favorable court decisions for Ripple might act as a major catalyst that restores confidence in XRP. Until these factors align, traders may face more volatility and sideways price action.
Technical analysts are closely monitoring XRP’s support near $0.47. If this level holds, it could spark a short term bounce, offering bulls a chance to regain momentum. However, if XRP falls below this support, it may trigger further downside, pushing prices into even riskier territory.
XRP’s underperformance compared to Bitcoin is a reminder that altcoins often bear the brunt of sell offs first. For investors, this means timing is everything.
Patient accumulation near strong support zones could pay off when the market eventually turns risk on again. Those waiting for a rebound should watch key macro signals, court updates, and liquidity flows to gauge when the next leg up might begin.