Why is XRP falling? The reason it dropped to $1.42 even without bad news

▲ XRP/ChatGPT generated image ©

The reason XRP (Ripple) fell even without clear negative news is attributed to a combination of capital outflow from altcoins in general and a break of technical support levels.

According to CoinMarketCap, a cryptocurrency market aggregation site, on April 23 (local time), XRP recorded a 2.49% drop over 24 hours, reaching $1.42, underperforming the generally flat market trend. CoinMarketCap identified the primary reasons for this decline as the breakdown of key support levels and an intensifying bearish phase for altcoins.

According to the media outlet, XRP broke below its upward trend line near $1.424 and traded below the 100-hour moving average, weakening its short-term momentum. During the same period, the altcoin season index also dropped by 5.71% over 24 hours, indicating a shift of market funds from relatively volatile altcoins to Bitcoin.

The derivatives market also failed to support buying sentiment. CoinMarketCap noted that while no specific negative news was identified, the total market open interest decreased by 5.48%, and the average funding rate turned negative, suggesting that long position liquidations may have contributed to some selling pressure. Additionally, the 24-hour trading volume also fell by 5.28%, hindering any attempts at a rebound.

The short-term key is the support zone between $1.39 and $1.41. This zone is where the 50-day EMA and the 50% Fibonacci retracement level coincide, and analysis suggests that if it holds, XRP could stabilize within a range of $1.39 to $1.45. Conversely, if it closes below $1.39 on a daily basis, selling pressure could increase, pushing it towards the next support level around $1.32.

Ultimately, this decline is more a result of combined technical selling and capital outflow from altcoins in general rather than specific negative news. However, there remains a possibility that upcoming events, such as the Ripple Las Vegas event scheduled for April 30, could act as new catalysts, so for the time being, whether the $1.39 support holds and the recovery of trading volume in the rebound zone will be key checkpoints.

*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.*