Ripple’s XRP is struggling to stay above $2 after a sharp decline over the weekend. March has been a rough time for XRP as price is barely able to keep a stable hold.
XRP hit a low of $2.08 on Sunday, marking a 22% decline in just two days. As of now the buyers stepped in to stop the freefall, pushing prices back up to $2.17, but the battle is far from over.
Why is XRP price Dropping?
The crypto market is under pressure due to economic concerns from the latest U.S. jobs report. Investors are spooked by the rising bond yields and inflation worries are driving them to move their money into much safer investments than crypto.
The largest cryptocurrency bitcoin has also dropped 20% and is now btc is trading at $80000. XRP is also feeling the heat from this fud.
The 10-year U.S. Treasury yield has climbed to 4.3%, its highest since November 2023. This move signals that big investors are pulling out of risky assets like XRP.
To make things worse, global trade tensions are stirring up uncertainty. If this continues through March, XRP could face even more volatility, making it harder for prices to recover.
Bears Are in Control: $270M in Short Bets at $2.70
Market data shows that XRP’s derivative traders are overwhelmingly bearish. According to Coinglass, over the past month:
- $375 million has been placed in short positions.
- Only $125 million has been placed in long positions.
That means about 77% of leveraged traders are betting against XRP
The key level to watch? $2.70. There are $297 million worth of short positions stacked at this price. If XRP gets closer to this level, short sellers may try to push it back down. There is high probability of bears doubling down on their bets or triggering liquidations. This makes $2.70 a huge hurdle for any potential recovery.
XRP Price Forecast: More Downside or a Rebound?
Right now, XRP is struggling to stay above $2.18 after a brutal 20% drop. If bulls can’t step up soon, another slide could be coming.
Key Levels to Watch:
- $2.60 Resistance – If XRP can break past this level, it could flip bullish.
- $1.95 Support – If the decline continues, this could be the next stop.
- RSI at 35 – XRP is nearing oversold levels, which could invite more selling.
- ADX at 32- indicates that volatility is high and the bearish bias is still present.
If XRP doesn’t reclaim $2.47 soon, another leg down is likely. However, if it manages to break past $2.70, we could see a rally toward $2.99 as short sellers get squeezed out.
For now, the market remains on edge, and traders should tread carefully.
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