XRP Market Cap Plunges by 400M, Raising Concerns About the Token's Ability to Maintain its Psychological Foothold Above $2

Within the past day, XRP's market capitalization has undergone noticeable turbulence. It started near $137.50 billion but later slipped to roughly $133.39 billion, marking a steep $4.10 million decline.

The XRP market has seen a wave of capital outflows recently, sparking concerns over whether the cryptocurrency can maintain its crucial psychological foothold above the $2 mark. Despite holding onto key technical support levels, the short-term picture is being clouded by fluctuating investor sentiment and sharp swings in market capitalization.

A Turbulent 24 Hours for XRP

Within the past day, XRP's market capitalization has undergone noticeable turbulence. It started near $137.5 billion but later slipped to roughly $133.39 billion, marking a steep $4.11 billion decline. Although some of this loss was clawed back, with the market cap rebounding to approximately $135.86 billion at press time, the volatility has raised eyebrows among traders and analysts alike.

As of report time, XRP is trading at around $2.31, reflecting a daily decline of about 1.3%. On the weekly timeline, the token has shed approximately 1.6%, underscoring a period of mild but persistent downward pressure.

Holding the Line: Key Support Zones

Despite the recent swings, XRP's price remains firmly positioned above several critical technical benchmarks. The 50-day simple moving average (SMA) is currently sitting at $2.26, while the 200-day SMA rests at $1.91. These averages serve as key barometers of the asset's longer-term momentum, and XRP's resilience above them suggests the broader market still harbors underlying bullish potential.

However, analysts caution that a sustained drop below the $2.26 mark could expose XRP to further downside risk, potentially testing the $2 threshold and, in a more severe retreat, revisiting the $1.91 support.

Market Outlook and Short-Term Projections

Looking forward, insights gathered from OpenAI's ChatGPT suggest a bifurcated scenario. Should XRP continue to experience capital outflows, the price could hover between $2.20 and $2.25 in the coming days.

If, however, inflows resume and buyer momentum strengthens, XRP may stage a short-term rally, targeting the $2.35-$2.40 range.

ChatGPT also highlighted that if bearish sentiment remains dominant, XRP may struggle to decisively break above the $2 zone over the next one to two weeks.

On the flip side, if optimism returns to the market, the token has room to push toward the $2.50 mark, rekindling bullish hopes.

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Chart Breakout Sparks Long-Term Optimism

While the short-term landscape presents a mixed picture, long-term analysts remain confident. Notably, cryptocurrency analyst Brett recently took to X, spotlighting a major technical breakout for XRP.

According to Brett, the token has finally escaped a seven-year descending triangle pattern—a long-standing formation that has constrained XRP since mid-2018. This breakout signals the potential for significant upside, with Brett setting a price target of $4.43.

Backing this bullish projection are strong momentum indicators, including the Weighted Moving Average (WMA), which has consistently provided firm support during XRP's ascent. Additionally, the breakout has been accompanied by a rise in trading volume, adding further credibility to the case for continued upward movement.

A Note of Caution: Declining Network Activity

However, not all indicators point in the same direction. Recent data reveals a sharp plunge in XRP's on-chain activity. Specifically, the number of new accounts being created has plummeted by a staggering 95% since peaking in early December 2024. This decline in network growth raises questions about the sustainability of the rally, as weakening user activity could eventually weigh on market enthusiasm.

The past 24 hours have been a rollercoaster for XRP, with $4 billion exiting the market and price action hovering precariously above critical levels. While short-term predictions remain mixed—dependent largely on whether capital flows reverse or bearish sentiment lingers—the longer-term picture has brightened following the breakout from a multiyear technical pattern.

For XRP holders and market watchers, the coming days will be crucial. Whether the cryptocurrency can hold its ground above $2, reclaim momentum, and continue pushing toward ambitious targets like $4.43 will hinge on a delicate balance of technical resilience, market sentiment, and fundamental activity. As always in the world of crypto, volatility is the only certainty.

: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any