XRP 💪💪💪

XRP price has dropped by 5% today as bearish on-chain metrics and technical indicators weigh heavily on the altcoin. Over the last 24 hours, XRP’s price fell by 4.8%, aligning with a broader market decline that saw the total crypto market cap slide by 6.5% to $3.35 trillion. The price drop was accompanied by a 114% surge in trading volume, highlighting significant sell-side activity.What’s Behind XRP’s Price Decline?$4.5 Million in XRP Long Positions LiquidatedMassive liquidations in XRP’s derivatives market have fueled the price decline. Data from CoinGlass shows that over $12.92 million worth of long positions were liquidated in the past 24 hours, compared to only $3.86 million in short positions. This forced selling has intensified the downward pressure.These liquidations mirror the $72.6 million in long liquidations seen between Dec. 18 and Dec. 20, which led to a 23% price drop, bringing XRP to a low of $1.95.Adding to the bearish sentiment, XRP’s funding rates have turned negative, dropping from 0.21% on Jan. 7 to -0.11% on Jan. 8. A negative funding rate indicates increased short interest and declining demand for long positions, with open interest dropping by $300 million in the same period.Long-Term Holders Offloading XRPOn-chain data reveals that long-term holders are contributing to the sell-off. According to Santiment, XRP’s Dormant Circulation Supply (356D)—tracking tokens unmoved for over a year—spiked from 8.3 million on Jan. 4 to 208.3 million by Jan. 7.This suggests long-term investors sold over $467 million worth of XRP, adding significant selling pressure and contributing to the 7.2% price drop since Jan. 4.Key Technical Levels to Watch for XRPXRP’s price continues to face resistance at the upper boundary of a descending parallel channel, currently at $2.45. If bulls fail to flip this level into support, the altcoin risks further decline to $2.15, supported by the 50-day Simple Moving Average (SMA). A break below $2.15 could lead to a deeper drop toward $2.00.The Relative Strength Index (RSI) currently sits at 53, suggesting a neutral stance, leaving room for a breakout in either direction. XRP needs to overcome the $2.45 resistance level for a bullish reversal.Outlook for XRP PriceDespite the current bearish momentum, some analysts remain optimistic. Crypto analyst Steph Is Crypto predicts XRP could still break out of its bull flag formation and potentially reach $5.60.Market Sentiment and TrendsThe ongoing price movement underscores the influence of derivatives market dynamics, long-term holder activity, and key technical levels. Traders are advised to monitor XRP’s funding rates, trading volume, and resistance levels to anticipate future price action, according to Cointelegraph.