Following a series of retreats in the global market, the XRP token price has dropped to $1.44, marking its lowest point since November 2024. According to data reported by Omkar Godbole, Bitcoin’s decline has dragged the asset down, breaking critical supports that maintained the confidence of short-term retail investors.
This sharp correction, driven by widespread risk aversion, has caused the cryptocurrency to lose the demand zone located at $1.60. By piercing this technical threshold, the asset enters a territory of scarce historical liquidity, leaving the path clear toward the psychological level of one dollar per unit.
The Breach of Key Supports and Loss of Bullish Momentum
Although Donald Trump’s electoral victory in the United States generated initial optimism, the bullish movement that took the token to $3.65 last July seems to have completely dissipated. Nevertheless, the current technical scenario suggests that sellers have taken absolute control of the market, invalidating the previous recovery efforts observed during last April.
On the other hand, the breach of the $1.60 barrier is alarming, as it represented an accumulation area where buyers previously halted massive sell-offs. However, by failing to find support in this zone, the XRP token price now faces a commercial vacuum, increasing selling pressure on the most important exchanges within the ecosystem.
Additionally, the weekly chart structure reveals a lack of significant trading volume between current prices and the lower support zone. Thus, the absence of historical defense levels allows for the anticipation of high volatility, forcing traders to re-evaluate their positions in the face of a much deeper and more prolonged crash.
Are Investors Preparing for a Major Decline Toward One Dollar?
In the derivatives market, specifically on the Deribit platform, institutional flows show a growing demand for downside protection strategies. Furthermore, an increase in the purchase of put spreads has been observed, reflecting a clear bearish bet, confirming that large capital anticipates a sustained fall in the value of the digital asset.
Moreover, the implementation of strategies such as strangles indicates that traders expect a burst of volatility in the coming days. Since these options grant the right to sell at predetermined prices, the prevailing sentiment is one of caution, seeking to safeguard capital against the hostile macroeconomic environment currently affecting the entire sector.
Ultimately, the immediate fate of XRP seems tied to the performance of major assets and the promised regulatory stability. While the XRP token price maintains its relevance in cross-border payments, the lack of an immediate positive catalyst suggests that the market could test the one-dollar support, marking a decisive milestone for the future trend of the project.
