XRP Price News: Red Signal “Tsunami” Supports Drop to $1.15 for XRP

XRP (XRP) has dived by 13% in the last 24 hours as the crypto market’s latest rout seems to have set its eyes on yet another victim.

The native asset of the Ripple network has dived by a staggering 41% in the past 30 days alone, as liquidations continue to mount.

Similarly, Solana (SOL) lost the $100 support in the past few days and is currently trading below $90 for the first time in two years.

Ethereum Monthly Returns – Source: CoinGlass

February has typically been a good month for altcoins. Data from CoinGlass shows that Ethereum (ETH) has only closed the month in red territory in 2 of the last 9 years.

XRP’s Funding Rate Collapses to Lowest Level Since October

Nonetheless, the latest wave of selling pressure has been relentless, triggering over $6.6 billion in long liquidations in just 8 days.

The October 10 flash crash was definitely the tipping point for cryptos. Something broke within the market that triggered a massive risk-off move that has already lasted four months and seems to be extended to a potential fifth.

Trading volumes for XRP have surged by 60% in the past 24 hours and currently account for 8% of the token’s circulating market cap at $6.6 billion.

XRP OI-Weighted Funding Rate – Source: CoinGlass

The OI-weighted funding rate for XRP hit its lowest level since October just 6 days ago. This means that short positions paid long ones as the market tilted sharply toward the bearish end.

Transaction volumes within the XRP Ledger have also been increasing since late December, moving from 9.6 million back then to 15.1 million as of last week, according to on-chain data from Artemis.

This spike in network usage seems to be the result of higher stablecoin volumes driven by growing adoption of Ripple USD (RLUSD).

This token has expanded its market cap from $1.3 billion to $1.5 billion in the past few months, climbing to the 10th spot already among the largest assets in this category.

XRP/USD Daily Chart (Binance) – Source: TradingView

The daily chart shows two potential areas of support after XRP lost the $1.50 support. The first would be the October 10’s bottom at $1.25, and the other the $1.15 resistance dating back to November 2024.

Sell Signals Pile Up in the 4H Chart

Looking at the 4-hour chart, we have received a surprising total of 5 consecutive sell signals in this lower time frame, confirming the strength of the selling pressure.

The entire move, measured since the first signal showed up on January 18, would have yielded a 31% return for a short position.

XRP/USD 4H Chart (Binance) – Source: TradingView

This signals system tracks “decisional” candles by analyzing volumes, trend direction, and a specific candle pattern. This large number of sell signals confirms a bearish outlook for XRP, especially after the token broke below the $1.50 psychological and technical barrier.

The Relative Strength Index (RSI) is once again dipping to extreme oversold levels at 18. Even in the crypto market, these are uncommon readings that can only be compared with the levels seen during the October 10 crash.

We may expect a retest of the $1.50 area in the next couple of sessions, but bearish momentum seems strong enough to push XRP down to the lowest end of the $1 area.