$5.1M Wiped Out in 24 Hours: Can XRP Price Survive the $2.00 Crash Zone?

XRP is feeling the heat this week as a wave of volatility sweeps through the crypto market. After briefly reclaiming ground above $2.00, the token tests that key support level again. Broader macro concerns, especially renewed trade tensions between the US and China, have weighed on risk assets, dragging down both stocks and crypto. On top of that, investors seem to be getting jittery, with large amounts of XRP moving onto exchanges and traders rethinking their positions. While Ripple’s progress with the SEC did bring a short-lived boost, current sentiment suggests the XRP market trend is in a cautious wait-and-see mode.

Rising Inflows and Liquidations Point to Caution

One of the biggest red flags right now is the jump in exchange inflows. Data from CryptoQuant shows XRP inflows spiking from 28 million to over 55 million tokens in just over a week, usually a sign that holders might be looking to sell. 

XRP Ledger Exchange Inflows Chart | Source: CryptoQuant

Add to that a spike in long position liquidations, hitting $5.1 million in the last 24 hours, and it’s clear many traders are starting to back off. With more people betting on downside moves, as reflected in the negative long-to-short ratio, the XRP market trend in the short term feels more defensive than optimistic.

XRP Derivatives Data | Source: Coinglass

XRP ETF Hopes Still Linger, But Patience Is Key

Despite all the short-term pressure, a longer-term narrative could benefit Ripple, a potential XRP ETF approval. Kaiko Research points to improved market depth and a favorable regulatory outlook compared to other tokens like Solana. However, with a new SEC Chair just stepping in, things might not move quickly. May 22 could be a key date to watch, especially for Grayscale’s filing. For now, the spotlight is on how XRP handles immediate support levels and whether technical signals suggest a deeper dip or a possible bounce. Let’s break that down in the XRP market trend and price analysis.

XRP Price Action Analysis of April 16th, 2025

The XRP price began its recent movement within a tight trading range between $2.11 and $2.15 before experiencing a sharp breakout to the upside, which was short-lived. After testing the resistance level near $2.19, the XRP price faced intense selling pressure, forming a descending channel. This downtrend has persisted, with XRP consistently making lower and lower highs. During the decline, the RSI showed multiple overbought conditions near key peaks and dropped into oversold territory several times, suggesting persistent bearish momentum with occasional attempts at recovery. The repeated rejection at the channel’s upper boundary confirms the strength of the ongoing downtrend.

Chart 1, Analyzed by Alokkp0608, published on April 16th, 2025

The MACD indicator reinforces this bearish sentiment, with multiple Death Crosses indicating sustained selling pressure, although brief Golden Crosses signaled temporary relief rallies. Currently, XRP has approached the highlighted support zone around $2.05, a level that previously acted as a demand area. The RSI is hovering near 36, indicating XRP is nearing oversold conditions again, which may lead to a short-term bounce if buyers step in at this level. However, the latest Death Cross on the MACD suggests continued caution is warranted.

XRP Balances on a Knife’s Edge

XRP is walking a fine line right now. The pressure is mounting, with exchange inflows and liquidations signaling that traders are playing it safe or jumping ship. That $2.00 support is holding, but just barely. On the brighter side, the buzz around a possible spot XRP ETF approval later this year is keeping long-term hopes alive.

Still, with a new SEC Chair settling in and global markets on shaky ground, things could go either way. Technical indicators show that the XRP price is near oversold, but there’s no clear green light just yet. All eyes are on how the XRP price reacts in the coming days; this could be the calm before a bounce or the slip before a deeper drop.