XRP has fallen 5.4% over the past 24 hours and trades at $1.1 on Monday, November 9, underperforming a declining cryptocurrency market following a technical breakdown.
As a result, XRP’s market capitalization has lost another $4.39 billion, falling from $73.74 billion to $69.35 billion over the period in question.
The decline began in earnest with an $8 billion wipe-out on Friday, which triggered consecutive bearish trading sessions, eventually pushing the asset to its current price.
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Selling activity accelerated alongside the decline, with 24-hour trading volume surging 150%, suggesting stronger selling conviction among market participants.
XRP underperforms the crypto market
As things stand, XRP is significantly underperforming the broader market. For example, it has shed more than 20% of its value over the past month, while Bitcoin (BTC) has lost approximately 10% in the same period.
Last week’s U.S. midterm elections were particularly important, as the results weighed heavily on investor sentiment, particularly given their potential implications for cryptocurrency regulation.
That is, expectations that the Democrats’ gains in both chambers of Congress could complicate the legislative path of the CLARITY Act have weakened part of the regulatory optimism surrounding XRP.
At the same time, concerns surrounding artificial intelligence (AI) regulation led to a sharp correction in U.S. equities, which rippled throuigh digital assets and forced traders to unwind more riskier positions, i.e., crypto.
XRP price outlook: Will $1 hold?
XRP is now approaching a critical technical and psychological support level at $1. If Bitcoin manages to stabilize around $75,000, buyers could step in to defend this threshold, potentially allowing XRP to consolidate too.
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Macroeconomic developments could also prove decisive. With the U.S. scheduled to release Consumer Price Index (CPI) data this week, less-than-ideal figures could further reinforce risk-off sentiment and add further pressure to digital assets, especially with recession talk becoming ever more common.
Derivatives activity provides another indication of bearish sentiment. Indeed, XRP perpetual futures open interest has fallen 7.3% to $837.49 million, per CryptoQuant data, suggesting traders have been closing leveraged positions.
Looking ahead, a decisive breakdown below $1 could trigger additional stop-loss orders and leveraged liquidations, potentially accelerating XRP’s decline toward its August low near $0.98. Conversely, a recovery would require XRP to stabilize in the former support area between $1.24 and $1.28 in the coming weeks.
Featured image via Shutterstock
