XRP plunged about 6.3% as Bitcoin dropped below key support, exacerbating the downtrend in cryptocurrency markets. The fall brought XRP down to approximately $1.54, with no specific catalyst for the decline. Instead, it was a reaction to a general risk-off sentiment that pressured major cryptocurrencies and high-beta tokens alike. The break below the crucial $1.60 support level led to forced selling, with attempts to rebound failing to reclaim $1.56.

Traders indicate that XRP needs to hold around $1.50 to prevent further declines, as a drop below this level could open the door to additional losses, potentially down to about $1.38 and even $1.02 if broader market weakness continues. The hefty volume during the sell-off suggested that the movement was driven by forced selling rather than gradual declines.

MORE FROM COINTIMES

XRP Sees 6% Surge Amid Institutional Accumulation and ETF Inflows

XRP surged 6% as strong institutional accumulation and ETF inflows indicated a significant market shift. Retail purchases also spiked, suggesting evolving investor sentiment.

Former support in the $1.60 to $1.62 range has now turned into resistance, with sellers actively defending any rallies. The market is at a critical juncture; if $1.50 holds, there may be a chance for stabilization. However, bulls need to push above $1.56 quickly to alleviate downside pressure.

For traders, this scenario is a breakdown-first situation. Any rebound will be met with skepticism until XRP can reclaim the $1.60 to $1.62 range with strong volume. The ongoing downtrend serves as a stark reminder of the volatility in the cryptocurrency space, highlighting the importance of technical levels in market sentiment.