Payments-focused cryptocurrency XRP is falling fast as falling Bitcoin prices lead to widespread risk aversion in the crypto market.
XRP has fallen to $1.44, its lowest level since November 2024 – the same month President Donald Trump won the US election. During his campaign, Trump promoted pro-cryptocurrency policies and created a favorable regulatory environment for digital assets. Fintech company Ripple uses XRP to facilitate cross-border transactions.
While the initial reaction to Trump’s election was bullish, the upward trend quickly slowed to above $3.50, eventually peaking at $3.65 last July. XRP has since been in a downward trend that has accelerated in recent weeks.
Support interrupts
Worryingly for bulls, it is now trading firmly below $1.60, the level where buyers stepped in during the April sell-off, halting losses at that time. This so-called support level is an area of outstanding demand, and a break below this level indicates that sellers are now in control.
Now, a clear pocket of air looms towards $1.00, as the charts show little historical support or volume between the current price of $1.44 and the psychological floor.
bearish bet
Traders appear to be bracing for further selling. Over the past 24 hours, block traffic on leading cryptocurrency options exchange Deribit has been characterized by demand for bearish strategies, bearish strategies, and strangle strategies (betting on volatility booms).
Options are derivative contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a later date at a predetermined price. A put option gives the right to sell and represents a bearish bet on the market, while a call option represents a bullish bet.