XRP (XRP) has dropped by 6% in the past 24 hours as the crypto market appears to be crashing following the Democrats’ victory in the U.S. mid-term elections.
Trading volumes have jumped by 200% during this period, as XRP dipped below multiple key supports and appears to be in full “falling knife” mode.
The token has now dipped near the lower bound of the $1 area and threatens to fully erase the gains that it saw following the market-wide August rally.
Binance’s $6.3 billion hack could have contributed to depressed market sentiment as well in the past few weeks, while a cheating scandal that hit Nvidia (NVDA) may have also rattled investors.
Wall Street Shuns XRP While Traders Endure $1 Billion in Long Liquidations
A long squeeze is unfolding as a result of this latest decline. Over $1 billion worth of long positions in the futures markets have been wiped out in the past 24 hours alone. Last week, traders took a similar hit as most tokens failed to get past key resistance areas.
As a result, we are at the brink of what could be the end of this short-lived bull market, as XRP only has one more key support to go before we can call this a complete reversal.
Similarly, we have seen exchange-traded funds (ETFs) linked to XRP receive zero net inflows in the past four days, indicating that Wall Street no longer has an interest in this altcoin as a result of a deterioration in market conditions.
We also reported a jump in exchange inflows recently, meaning that investors have been transferring their tokens to more liquid venues, potentially to sell them. This puts pressure on XRP in the short term and further confirms a bearish outlook.
According to data from Santiment, these transfers have hit the highest level since July 2026. Back then, XRP dropped from $1.15 to $1.05 in just a few days.
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See all Ripple forecastsXRP Threatens to Drop Below $1 as the Political Landscape in the U.S. Shifted
Turning to the 4-hour chart, XRP has filled the first price imbalance from the daily chart dating back to August. Now, the price seems to be aiming for the midpoint of the second fair value gap (FVG) sitting at $1.04, as we recently predicted.
We expect a rebound off this level. Otherwise, if the price dips to $1 again, we envision the end of this recent bull market.
The Relative Strength Index (RSI) in this lower time frame has dipped to extreme levels at 18, indicating that bearish momentum has accelerated. The last time the oscillator hit such lows, in early February, the price of XRP kept dropping a few weeks later.
Hence, we believe that there could have been a shift in the market’s perception of cryptocurrencies and their fundamentals that could exacerbate this correction.
Macroeconomic conditions are not favorable at all and encourage this kind of selling, as another rate hike is expected in December. Meanwhile, the war with Iran persists, oil prices continue to be high, and the political situation in the United States has shifted.
Republicans will now have a tougher time passing on legislation that supports the advancement of the crypto sector in the next few years, as the Democrats have taken over both the House and the Senate.
The next stop for XRP, if the downtrend accelerates, would be $1, at which point the order block that started this bull market in August will be retested. If it fails, we could revisit levels not seen since November 2024 — back when Donald Trump was elected President.