XRP dropped nearly 4 percent on Thursday, March 27, to trade at $2.36 during the mid-European session. This pullback comes after the altcoin attempted to regain bullish momentum in the second and third week of March.
Santiment reports that the quick XRP market dip came from whale investors decreasing their demand. The total supply of 5.82 billion XRP is being held dormant in wallets containing between 1 million and 10 million XRP units.
Within 24 hours, the XRP derivatives market suffered $10 million of liquidations. Notably, over 97 percent of the positions affected were long trades, highlighting the severity of the pullback.
The market sentiment deteriorated intensely when XRP lost support from the $2.37 level. Moreover, the market registered growing bearish predictions for the near future after XRP prices failed to stay above their support level on Wednesday.
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The resolution of the prolonged SEC vs Ripple lawsuit, once viewed as a bullish trigger, appears to have led to a sell-the-news event. Traders anticipated a strong rally following legal clarity and instead moved to secure profits, intensifying the selling pressure.
Technical Indicators Signal Warning as Key Support Is Tested
The daily chart reflects a bearish formation, with analysts pointing to a potential head and shoulders pattern. Furthermore, the Relative Strength Index (RSI) shows a falling divergence, indicating reduced bullish momentum.
Source: Tradingview
XRP is approaching a critical support zone between $1.9 and $2. A break below this range could trigger further losses and spark fears of a deeper correction.
However, if XRP manages to reclaim the $2.5 resistance level, analysts expect a possible shift in momentum. A decisive move above that threshold may lead to renewed buying pressure and a rally toward price discovery.
Despite short-term weakness, XRP’s long-term outlook remains supported by growing institutional interest and improved legal clarity. Traders will closely monitor whale activity and technical indicators for signs of a reversal or continued downturn.
Also Read: Bitwise Asset Manager Makes Bold Price Predictions For XRP – See This
