XRP has experienced a significant sell-off over the past few weeks after peaking in early January and reaching a new all-time high of $3.40 per token. The last time XRP traded above the $3 mark was in January 2018.
As of April 10, XRP is trading at $1.96.
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XRP has experienced a significant sell-off over the past few weeks after peaking in early January and reaching a new all-time high of $3.40 per token. The last time XRP traded above the $3 mark was in January 2018.
What XRP Is Used For and the Tech Behind It
XRP is mainly used for moving money across borders quickly and cheaply. Ripple built it to help banks and payment providers settle international transactions in seconds instead of days. Instead of needing to hold a bunch of different currencies, XRP can be used as a bridge—especially in places where liquidity is thin.
It runs on the XRP Ledger, which isn’t like Bitcoin or Ethereum. There’s no mining involved. It uses its own consensus mechanism that lets it handle about 1,500 transactions per second, with super low fees. It’s fast, efficient, and doesn’t chew up energy like proof-of-work chains do.
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What’s With The Drop?
Over the last few weeks, XRP has declined more than 40% after topping out in January. The primary cause of this drop—though you can spin a lot of different narratives around it—is the broader derisking in the U.S. economy, which has triggered a global risk-off sentiment.
Fundamentally, nothing has really changed with XRP. This pullback is largely driven by a bearish macro outlook. Compared to other altcoins, XRP has actually held up relatively well—thanks to stronger fundamentals and institutional backing.
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Key Levels to Watch
In the weeks and months ahead, it will be crucial to monitor key levels to get a better sense of whether the market is going to continue dropping, reverse, or simply consolidate for a while.
On the daily chart, XRP is in a clear bearish trend. There was a moment where it looked like a potential breakout to the upside, but that move was entirely news-driven—sparked by Trump’s post about a potential “Crypto Reserve,” in which XRP was included.
There are two short-term support levels I’d keep an eye on, both of which have shown recent signs of demand. The first is the $1.75 level, and the second is the $1.40s—a prior area where price accumulated back in November.
With these levels in mind, I’d watch the trend. It’s a common saying, but the trend truly is your friend. Currently, in most risk-on markets—especially U.S. equities—the trend is bearish.
If you’re an investor or trader looking for a bullish case, you’d want to start seeing XRP fail to trade towards old lows and begin forming higher lows in the market. This would not only set up a potential long move but also possibly shift the negative sentiment that has been prevailing in the crypto markets for a while now.
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This article XRP’s Correction Explained: Key Levels, Sentiment Shifts, and What’s Next originally appeared on Benzinga.com
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