The payments-focused cryptocurrency XRP is sinking rapidly as the falling price of bitcoin creates widespread risk aversion in the cryptocurrency market.
XRP has fallen to $1.44, the lowest level since November 2024, the same month President Donald Trump won the US election. Trump campaigned on pro-cryptocurrency policies to foster a favorable regulatory environment for digital assets. XRP is used by financial technology company Ripple to facilitate cross-border transactions.
While the initial reaction to Trump’s election victory was bullish, the bullish trend quickly slowed above $3.50 and eventually peaked at $3.65 in July of last year. Since then, XRP has been in a downtrend that has accelerated in recent weeks.
support rest
Worryingly for bulls, it is now trading firmly below $1.60, a level where buyers intervened during the April sell-off, halting the decline at that time. This so-called support was the prominent demand zone, and the break below it indicates that sellers are now in control.
Now, a clear air pocket looms to $1.00 as the charts reveal little historical support or trading volume between the current price of $1.44 and the psychological floor.
Bearish bets
And traders appear to be bracing for a deeper sell-off. Block flows on leading crypto options exchange Deribit featured demand for put spreads, a bearish strategy and strangleholds, a bet on rising volatility, in the past 24 hours.
Options are derivative contracts that give the buyer the right, but not the obligation, to buy or sell the underlying asset at a predetermined price at a later date. A put option gives the right to sell and represents a bearish bet on the market, while a call option represents a bullish bet.
