It seems the XRP Ledger (XRPL) outage has negatively impacted XRP’s price, as the coin has fallen over 11% in the past 24 hours, currently trading at $2.41, making it the biggest loser among the top ten cryptocurrencies by market capitalization.
Open interest in XRP futures has dropped to a monthly low of $1.5 billion, a sharp decline from its January 17 peak of $7.62B billion, according to Coinalyze data. The downturn suggests that traders are stepping back from leveraged positions, reducing market participation amid uncertainty.
Source: Coinalyze
From a technical standpoint, the coin’s failure to reclaim $2.75 as support is reinforcing bearish sentiment. The asset has now fallen below its 50-day EMA ($2.62), which is likely to produce more downward pressure. Coupled with this, the RSI is in a downturn and heading to oversold territory.
If the coin fails to hold above $2.42, analysts warn that the next major support levels could be $2.20 and potentially $1.97.
Institutional Players Remain Engaged on XRP
Despite the blood in the market today, looks like institutional investors are not stepping away; CoinShares reports that XRP investment products saw $31 million in inflows last week, bringing total inflows since mid-November 2024 to an impressive $484 million.
It’s expected that a potential XRP ETF could be the trigger for a bullish narrative for the asset in the long-term, as described by senior Bloomberg analyst Eric Balchunas.
While the immediate reaction to the downtime has been negative, a recovery will depend on regaining key technical levels and restoring investor confidence. If $2.75 can be reclaimed, bulls could regain momentum. Otherwise, traders will be watching for further declines toward critical support zones in the short to medium term.
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