Analysis: XRP in trouble, is a greater fall approaching?

Source: CritpoTendencia Original Title: Analysis: XRP in trouble, is a bigger drop approaching? Original Link: The price of XRP, like much of the top 10 major cryptocurrencies, is experiencing daily losses and is still far from recovering from the drop of the last seven days.

At the time of writing, XRP is trading at $2.12, with daily losses of 3.3%, weekly losses of 11.4%, and monthly losses of 13.9%. A clearly bearish outlook, similar to the rest of the crypto market.

What is behind the current decline of XRP?

For months, there have been virtually no sustained inflows into XRP. On November 19, according to Coinglass, there was another net outflow of 1.33 million dollars, a behavior consistent with the past few weeks.

This pattern responds to a greater risk aversion, visible both in speculative technology stocks and in the cryptocurrency market. It relates to several factors:

A more limited liquidity due to the fear of excessive spending on AI projects, economic data pointing to greater instability, and a more restrictive stance from the Federal Reserve. Together, they create an unfavorable environment for bullish impulses, which keeps the downward pressure on the market.

At this moment, investors are watching several events that could influence the coming weeks: Nvidia's earnings, the FOMC minutes, and the non-farm payroll figures, considered key indicators to anticipate future movements.

According to analyst Ali Martinez, recent macroeconomic pressure and declining prices have triggered significant reactions among investors. Additionally, he shared an important projection for XRP:

Below $2.15, the following key levels for XRP are: $1.91 and $1.73

Analysis of XRP charts: key levels to consider

The chart shows that the 50-day EMA fell below the 200-day EMA. This crossover, known as the death cross, suggests that the selling pressure in the medium term outweighs the long-term accumulation. Additionally, the price continues to move within a medium-term bearish channel.

Resistance levels to watch:

• $2.21: 200 EMA level and immediate resistance. It is the first target to try to reverse the downtrend.
• $2.30: intermediate resistance and maximum of November 17. It is the strongest level in the short term.
• $2.41: area where the lower moving averages crossed downwards the upper ones (death cross), which resulted in the current levels.

Support levels to watch:

• $2.10: immediate support and double bottom, the strongest in the short term.
• $2.00: if the previous support fails, this would be the next level to watch and has psychological relevance.
• $1.85: if the previous level is broken, the price could descend towards this area.

The RSI at 35 points indicates that the bearish control continues and that new pullbacks could still occur.

Important information to consider

According to Lookonchain, an operator recently opened a short position in XRP for 27 million dollars, using 20x leverage.

Santiment data shows that, in just 48 hours, around 200 million XRP were sold. This selling pressure came from large holders with between one and ten million tokens.

Although the price of XRP remains above significant historical levels, around 41.5% of its supply ( about 26.5 billion tokens ) is currently in a state of loss. This reflects a notable deterioration in the overall profitability of the token.

Moreover, the proportion of holders in profit fell to 58.5%, the lowest level since November of last year, when XRP was trading around $0.53. This drop in profitability, combined with the increase in trading volume, suggests a market under strong pressure and with a clear predominance of bearish sentiment.