XRP has taken a significant hit, falling below the $2 mark for the first time in four weeks. This sudden dip arrives as the broader crypto market experiences intense selling pressure, erasing over $700 billion in value within just a week. With liquidations surging to nearly $1 billion in the past 24 hours, the big question on everyone’s mind is: can XRP make a comeback?

XRP Falls to 4-Week Low

It’s been a rough week for XRP, with the token shedding around 26% of its value and now trading below $2. Interestingly, despite this sharp price drop, trading volume has actually seen a slight uptick of 12%, reaching $7.63 billion. However, XRP’s price action remains choppy, fluctuating between $2.25 and $1.99 over the last day, signaling ongoing uncertainty in the market.

One major factor seemingly contributing to XRP’s woes is a noticeable decrease in network activity. Crypto analyst Ali Martinez recently highlighted that the number of active XRP addresses has plummeted by 50% since December, dropping from 202,250 to 101,169.

This dip in activity suggests that fewer traders are interacting with XRP at the moment, which could be playing a role in its recent struggle to maintain price levels.

Key Levels to Watch for XRP

After an impressive 500% surge from November to mid-January, XRP has found itself stuck in a range between $2 and $2.5. To reignite upward momentum, XRP needs to climb back above its 50-day simple moving average (SMA), currently sitting at $2.72.

On the flip side, if sellers continue to dominate, we could see XRP testing the next support levels around $1.72 and $1.50, with the latter aligning with the 200-day SMA.

Adding to the bearish signals, XRP’s Relative Strength Index (RSI) has dipped into oversold territory recently. This could be a silver lining, hinting that a potential price reversal might be brewing if buyers decide to step back in.

Crypto Market Sees $952M In Liquidations

The broader crypto market is experiencing a significant correction, with major players like Bitcoin dropping below $80,000 and Ethereum reaching its lowest point in a year.

Data from Coinglass reveals a staggering $952 million in crypto positions liquidated in just the last 24 hours. This includes a massive $474 million in Bitcoin long positions, $216 million in Ethereum longs, and even $25.28 million from XRP traders.

In total, a whopping 226,501 traders faced liquidation in the past day. Interestingly, the single largest liquidation order was on HTX for the BTC-USDT pair, clocking in at a hefty $38 million.

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