XRP Slides to $1.59 as Risk-Off Pressure Grips Crypto Markets

The cryptocurrency market turned sharply defensive this week, with XRP falling to $1.59, marking one of its steepest short-term declines in recent months. The drop comes as a market-wide risk-off sentiment intensifies, pushing investors away from volatile assets like cryptocurrencies and into safer alternatives. Data from major exchanges shows XRP is now down over 12% on the week and nearly 28% from its recent local high, signaling strong bearish momentum.

This move is not isolated. Instead, it reflects a broader shift in market psychology driven by macroeconomic stress, declining liquidity, and weakening technical structures across digital assets.

Market-Wide Risk-Off Sentiment Hits Crypto Hard

Global financial markets are currently operating in a defensive mode. Rising uncertainty around interest rates, slowing economic indicators, and geopolitical concerns have forced investors to reduce exposure to high-risk assets. Historically, cryptocurrencies react faster and more aggressively during such phases.

In the last 72 hours alone, the total cryptocurrency market capitalization dropped by approximately 6%, wiping out an estimated $110 billion in value. XRP, known for its high beta relative to Bitcoin, has underperformed the broader market during this downturn.

XRP Price Action and Key Technical Levels

From a technical standpoint, XRP has broken below multiple short-term support zones. The $1.65 level, which previously acted as strong support, failed to hold under sustained selling pressure. Trading volume spiked by over 35% above the 30-day average, a classic signal of capitulation-driven selling.

Key technical metrics show:

• Relative Strength Index (RSI): Near 34, approaching oversold territory

• 200-day Moving Average: Currently near $1.88, well above spot price

• Next Major Support Zone: $1.50-3$1.52 range

If selling continues, analysts warn that a retest of the $1.45 level is statistically plausible based on historical volatility models.

Institutional and ETF Data Add Bearish Signals

On the institutional side, market data indicates reduced exposure to XRP-linked investment products. Net outflows from XRP-focused funds over the past week are estimated at $48 million, representing the largest weekly outflow this quarter.

This matters because institutional flows often act as a stabilizing force during corrections. The absence of fresh capital has increased downside pressure and reduced bid-side liquidity, making sharp price swings more likely.

Broader Crypto Weakness Amplifies XRP Decline

Bitcoin and Ethereum, which often dictate broader market direction, are also under pressure. Bitcoin is down roughly 7% week-over-week, while Ethereum has slipped close to 9%. Historically, when Bitcoin dominance rises during sell-offs, altcoins like XRP tend to experience deeper percentage losses.

Additionally, crypto derivatives markets recorded over $620 million in liquidations in the last 48 hours, with XRP accounting for a notable share of long-position liquidations. This forced selling accelerated the price drop.

What the Data Suggests Going Forward

From an analytical perspective, XRP’s short-term outlook remains fragile. Volatility metrics are expanding, and sentiment indicators remain firmly bearish. However, historical data shows that XRP has previously staged relief rallies after RSI levels dipped below 35, particularly when macro pressure stabilizes.