Key Level Tested After Massive Weekly Drop

Altcoin Analysis

XRP has faced intense selling pressure this week, tumbling toward the critical $2 mark in early trading on Wednesday, November 5.

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Key Takeaways:

XRP dropped near $2 before a slight recovery.
Analysts highlight $2 as the key support level.
Technical signals point to ongoing bearish momentum.
The broader market downturn adds to pressure.
ETF speculation stirs mixed investor sentiment.

The token’s sharp decline followed a period of technical weakness that began in late October, with a clear pattern of lower highs and lower lows signaling a bearish structure.

At press time, XRP is trading around $2.25, recovering slightly after briefly dipping below $2.10 earlier in the session. Still, the asset remains down more than 15% over the past seven days, underscoring the fragility of market sentiment.

Analysts Eye Key $2 Support Zone

Market analyst Ali Martinez highlighted the bearish trend earlier this week, noting that XRP had lost key support near $2.60. In a post on X, he pointed out that the next crucial support sits near $2.00 — a level that could determine whether the downtrend deepens. His chart projection suggested that a break below this zone might expose the price to further downside around $1.90.

Other traders echoed similar concerns, citing the loss of both the 200-day exponential moving average (EMA) and the 38.2% Fibonacci retracement level at $2.47. The MACD histogram has flipped negative, signaling fading momentum, while the RSI sits near 36, indicating an oversold condition but also reflecting persistent weakness.

Market Sell-Off Adds to XRP’s Pressure

XRP’s latest losses come amid a broader market correction that erased over $200 billion in total crypto market capitalization within 24 hours. According to CoinMarketCap, the global crypto market cap now stands at $3.38 trillion, down from $3.56 trillion the previous day. This coincided with roughly $836 billion in liquidations, primarily from overleveraged long positions.

The decline has also hit XRP’s market capitalization, which dropped from roughly $152 billion on Monday to below $127 billion as of Wednesday.

ETF Speculation and Investor Anxiety

Traders are also reacting to mixed sentiment surrounding potential XRP exchange-traded funds (ETFs). Asset managers such as Franklin Templeton and Bitwise recently filed applications for new XRP-related ETFs, with possible approval windows opening later in November. While these moves signal growing institutional attention, some investors appear to be taking profits ahead of regulatory clarity, adding to the short-term volatility.

Analysts Urge Calm Amid Bearish Sentiment

Despite the market turbulence, several analysts have called for patience. Michaël van de Poppe shared on X that while many fear a new bear market has begun, the disconnect between retail traders and institutional adoption remains significant.

He suggested that long-term investors should remain calm and avoid panic selling as major developments continue to unfold in the crypto space.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.