Hit by Massive Liquidations! XRP Ultimately Plunges to February Low

▲ XRP/AI Generated Image ©

XRP (Ripple) collapsed its key support level, ultimately falling to its lowest level since February. While a short-term bearish trend was strengthened by widespread market liquidations and risk-off sentiment, the growth of XRP spot ETFs and RLUSD is emerging as a key variable maintaining long-term expectations.

According to the investment media outlet TradingNews on May 28 (local time), XRP fell to $1.2723 during intraday trading, marking its lowest level since February. XRP traded around $1.28 on the day, down approximately 3.2%, and its previous key support level of $1.2810 also collapsed. The outlet analyzed that widespread market risk-off sentiment, with Bitcoin (BTC) falling below $73,000 and the total cryptocurrency market capitalization decreasing by over 3%, directly impacted XRP's decline.

The recent bearish backdrop is rooted in geopolitical risks in the Middle East and large-scale leverage liquidations. Liquidations occurred across the cryptocurrency market amid escalating tensions between the US and Iran, and simultaneously, investor sentiment for altcoins rapidly cooled as investment funds shifted to AI-related industries. XRP, too, saw its high-risk asset nature highlighted, falling approximately 17% from its May 14 high of $1.5485.

However, the flow of XRP spot ETFs appears relatively stable compared to Bitcoin. XRP spot ETFs recorded a flat trend with no net inflows or outflows over the past day, whereas on the same day, approximately $700 million in outflows occurred in the Bitcoin spot ETF market. Notably, XRP spot ETFs have recorded the highest monthly inflows this year, totaling approximately $118 million. The outlet interpreted this as a sign that institutional investors' long-term investment sentiment for XRP remains intact.

Technically, XRP has fallen below its major moving averages. Currently, XRP is trading below all of its 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMA), and the Relative Strength Index (RSI) has dropped to around 43, indicating weakening buying pressure. In the short term, whether XRP holds support at $1.27 is considered a key variable, and in case of a rebound, breaking above $1.41, where the 20-day EMA is located, after recovering $1.34, is identified as an important resistance level.

In the long term, the expansion of the Ripple ecosystem is presented as a core argument for a bullish outlook. Ripple's stablecoin RLUSD has grown to become the third largest among regulated stablecoins, currently holding over $1.8 billion in assets. Analyses suggest that the resolution of the US Securities and Exchange Commission (SEC) lawsuit risk, a $125 million settlement, and the expansion of its international remittance network are strengthening the investment thesis for XRP. The outlet reported that long-term price targets of $1.90-$3.60 by 2026, and even $10-$28 in the very long term, are being discussed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*