Payments-focused cryptocurrency XRP is rapidly collapsing as falling Bitcoin prices lead to widespread risk aversion in the crypto market.
XRP fell to $1.44, the lowest since November 2024 – the same month President Donald Trump won the US election. Trump campaigned on pro-crypto policies to foster a favorable regulatory environment for digital assets. XRP is used by financial technology company Ripple to facilitate cross-border transactions.
Although the initial reaction to Trump’s election victory was bullish, the uptrend quickly slowed above $3.50, eventually peaking at $3.65 in July of last year. Since then, XRP has been in a downward trend that has accelerated in recent weeks.
Support break
What is concerning for the bulls is that they are now trading firmly below $1.60, a level at which buyers stepped in during the April sell-off, thereby stopping the decline. This so-called support was the strongest demand area, and the break below it indicates that sellers are now in control.
Now, a clear air pocket looms up to $1.00, as the charts reveal weak historical support or trading volume between the current price of $1.44 and the psychological floor.
Bearish bets
And traders appear to be bracing for a bigger sell-off. Block flows on leading crypto options exchange Deribit have featured demand for put spreads, a bearish strategy and strangles, a bet on volatility booming, over the past 24 hours.
Options are derivative contracts that give the buyer the right, but not the obligation, to buy or sell the underlying asset at a predetermined price at a future date. A put option gives the right to sell and represents a bearish bet on the market, while a call option represents a bullish bet.
