XRP is under significant downward pressure as geopolitical tensions, regulatory delays, and weakening network metrics converge, threatening a critical price breakdown.
Key Metrics Highlight Downtrend
- TVL Drop: XRP Ledger’s total value locked (TVL) fell 12.5% to $54.2 million, signaling reduced DeFi activity.
- Market Sentiment: Open interest in XRP derivatives plummeted 36%, with funding rates turning negative.
- Technical Warnings: A death cross (50-day MA below 200-day MA) and descending triangle pattern suggest further downside.
XRP briefly rebounded to $2.02** (up 3.34%) after testing the **$2 support level, but analysts caution that failure to hold this zone could trigger a fall toward $1.47—or worse.
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What’s Driving the Selloff?
1. Regulatory Delays
The SEC’s postponement of Franklin Templeton’s spot XRP ETF decision dampened institutional adoption hopes. This delay aligns with broader U.S. regulatory hurdles for crypto assets.
2. Geopolitical Risks
Escalating Middle East tensions fueled a market-wide risk-off move, exacerbating XRP’s decline. The token entered one of its longest losing streaks in over a month.
On-Chain and Technical Weakness
Network Activity Slows
- TVL Decline: Reflects weaker DeFi participation compared to rival blockchains.
- Derivatives Data: Negative funding rates and lowered open interest indicate bearish trader positioning.
Price Chart Alerts
- Descending Triangle: Suggests potential breakdown.
- Critical Support: The $2.10–$2.09 range (200-day MA) is now compromised.
Potential Scenarios: Support Levels and Targets
Bearish Breakdown
- $2.00: Immediate support; breach could accelerate losses.
- $1.90–$1.77: Next demand zone.
- $1.47: Long-term support (if downtrend persists).
Bullish Reversal
- Holding $2.00** with rising volume could target **$3.00, especially if ETF optimism returns.
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FAQ: Quick Answers
Q: Why did XRP’s TVL drop?
A: Reduced DeFi activity and trader exits amid regulatory/geopolitical uncertainty.
Q: What’s the death cross?
A: A 50-day MA crossing below the 200-day MA—often a bearish signal.
Q: Could XRP rebound?
A: Yes, if it holds $2.00 and ETF/news sentiment improves.
Outlook: Regulation and Technicals Hold the Key
XRP’s near-term trajectory hinges on:
- SEC ETF decisions.
- Geopolitical developments.
- Network metric recoveries.
Monitor $2.00 closely—a break either way could set the next trend.
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