Cryptocurrency markets in Western Asia are falling below the first quarter peak of $2.86 trillion due to rising geopolitical tensions. Ripple (XRP) took its share from last week’s major sell-off. On Sunday, it dropped to $0.43 and then experienced a minor recovery.
Alarming Signs for Ripple
However, the rise did not last long above $0.5 due to increased selling pressure ahead of Bitcoin‘s third halving cycle. After a more than 21.2% drop over the week, XRP is trading at $0.4766 on Wednesday. Bitcoin‘s price is also falling, testing the $60,000 support with further risks of dropping to $50,000.
Major altcoins like Ethereum (ETH) could not escape the blow from the drop from March’s high levels. Ethereum dropped to $2,950 at the time of writing and fell a total of 15% over seven days. A surprising 26% decrease in 24-hour trading volume to $1.66 billion supports the decreasing interest in XRP among investors.
Will XRP Reach $1 Again?
XRP has fallen to the seventh position with a market cap of $26 billion, trailing behind Lido Staked Ether, a liquid stake token pegged to ETH’s price. XRP is currently testing a significant support area at $0.47. This area has been a launching pad since July 2023, where bulls have stepped in, changing the trend direction upwards and stopping permanent losses.
If bulls defend the area around $0.47, an immediate recovery could pave a new path towards $1. Despite this strong support, investors need to be cautious as support areas tend to weaken when tested multiple times. Trading below $0.47 would significantly magnify XRP’s technical weakness and expose the tokens to short sellers. Some investors might prefer to sell at a loss to protect their wallets from volatility, which could further increase the already intense selling pressure.