The crypto market took a heavy hit yesterday, and Ripple‘s XRP was no exception. The token lost more than 6%, falling from around $2.92 to $2.74. Still, XRP is performing relatively better than many other altcoins, which hit fresh lows. The question now is: what does this mean for investors, and where could the price go next?

Why is XRP falling?

The decline in XRP is part of a broader correction across the crypto market. Yesterday, cryptocurrencies collectively lost about 4.5% of their value, marking the worst day since April. Bitcoin dropped to $108,700, while Ethereum fell to its lowest level since August. For XRP, this was the largest red candle since August 19. What stands out is that XRP did not break to a new low. On Monday, the price dipped to $2.71, but that level was not retested yesterday. Analysts identify $2.65 as the next key support, while a recovery above $3.00 to $3.20 could turn sentiment bullish again.

ETF and long-term holders provide support

Interestingly, the price pressure comes despite positive news: XRP received indirect exposure through the Hashdex Nasdaq Crypto Index US ETF, an event many expected would provide extra momentum. However, broader macroeconomic concerns and uncertainty surrounding U.S. inflation data keep the market cautious.

On the other hand, long-term holders (LTHs) continue to show confidence. Data from Glassnode shows that the “Liveliness” indicator has been declining in recent weeks. This suggests that less XRP is moving, as more investors are holding or accumulating instead of selling. This helps limit panic selling and supports future recovery potential.

The Net Unrealized Profit/Loss (NUPL) of long-term holders also suggests that little profit-taking is happening at these levels. As long as NUPL stays below 0.7, the risk of large-scale sell-offs remains relatively low.

Short term: key levels

At the moment, XRP is trading around $2.84, just below the resistance at $2.85. If this level flips into support, it could signal a recovery toward $2.94 and potentially $3.02. If downward pressure continues, the next support levels to watch are $2.75 and $2.64. Meanwhile, the market is keeping an eye on the release of U.S. inflation data (2:30 PM CET). Lower-than-expected numbers could provide the crypto market with much-needed relief.

Conclusion

XRP has gone through a sharp correction but remains more resilient than many other altcoins. Thanks to the confidence of long-term holders and recent ETF developments, the potential for recovery is still intact. However, short-term levels around $2.65 on the downside and $3.00 to $3.20 on the upside will determine the next move.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.