XRP Drops Below $2 Ahead of Trump’s Davos Speech
Ripple (XRP) fell 2.6% to $1.93 in 24h, underperforming the broader crypto market, which has lost 2.25% due to negative investors’ sentiment.
The price slump has extended XRP’s weekly loss to about 75 at the press time, with data showing a sharp volume reduction over the last 24 hours.
XRP trading volume has declined by 17.34% to $3 billion as investors rotated positions away from altcoins in favour of BTC, with increased market dominance on Tuesday.
Traders said XRP price depreciation is due to mid-term holders selling near $2 resistance, technical weakness, and macro risk aversion ahead of President Donald Trump’s Davos speech.
The markets and investors await Trump’s speech, saying any crypto-hostile rhetoric could extend losses, while pro-innovation comments might spark relief rallies.
XRP faces triple pressure: technical resistance at $2, mid-term holder distribution, and altcoin weakness. While Ripple’s regulatory progress and institutional support provide long-term support, short-term sentiment hinges on whether $1.81 (swing low) holds.
Glassnode reports XRP’s market structure mirrors February 2022, when mid-term holders started selling as the price approached their $2 cost basis.
These underwater holders are incentivised to sell near breakeven levels, creating a supply overhang. With XRP hovering below $2, this psychological zone acts as resistance rather than support, according to technical traders.
Technical data suggests traders are defending the $2 level as resistance rather than support. With volume down 17% to $2.98 billion, there’s insufficient buying power to overcome technical selling.
Crypto markets bled $70 billion as Bitcoin dominance rose to 59.14%, with capital rotated from alts to BTC. XRP’s 2.6% drop exceeded the median altcoin’s -1.8% decline.
This suggests XRP remains highly sensitive to broader market rotations. The CMC Altcoin Season Index fell to 26, showing investors prefer BTC’s relative stability amid Trump speech uncertainty and rising Treasury yields. Global Equities Mixed as Markets Digest Uneven Macro Backdrop
