The cryptocurrency market has been plunged into chaos in just one day. The leading cryptocurrency Bitcoin (BTC) has experienced a 7.4% drop in the last 24 hours, with indications that it could go even lower. While BTC has dropped to as low as $25,000 on some exchanges, it is currently trading at around $26,438. One of the assets most affected by this sharp decline in the crypto sector is XRP.
XRP Price Crashes
XRP has plummeted by 15% in the last 24 hours, breaking below the $0.50 support level and facing a major downfall. It is quite interesting to think that just a month ago, XRP experienced a rally that pushed its price up to $0.91, only to suffer such a significant drop.
The news of Elon Musk selling BTC through Tesla and other negative developments have disrupted the entire sector. XRP, in particular, has been hit harder by this decline due to its recent consolidation and failure to break resistance. The indirect impact and selling pressure caused by the rumors of Tesla selling $377 million worth of BTC are believed to be the reasons behind XRP’s sharp decline.
Looking at the XRP chart, the current situation is clearly visible, with a descending wedge formation becoming apparent. This is known as a highly bearish formation, and the situation for XRP has reached a frightening level.
XRP Price Analysis
If XRP manages to hold the $0.50 support, it could escape the impact of this drop with minimal damage. However, looking below $0.50 reveals that the next significant support level is at $0.33.
Currently, the RSI is in oversold territory, indicating a continued decline. In this context, a sharp drop to the $0.46 support can be expected. Below $0.46, the first support level for XRP would be at $0.33. XRP has not dropped to these levels in the past 12 months, which suggests a major bear market for XRP. The quickest way for XRP to recover from this situation would be a close above $0.58.
