XRP weakened again recently, breaking below the $1.315 support level and briefly dipping to $1.2931 before recovering to around $1.30. Foreign media, citing analysts, suggest that this volatility has exacerbated market divergence, but the current pressure stems more from liquidity tightening and an overall market downturn than from a sudden regulatory event like that of 2020.
It briefly fell below $1.30 in the past 24 hours.
Reports indicate that XRP fell from $1.3267 to $1.2993 in the past 24 hours. During the 23:00 UTC session on May 27th, selling pressure intensified significantly, with approximately 64 million XRP traded, causing the price to break below the $1.3150 support level.
Although a slight rebound followed, the market is still awaiting clearer direction. The divergence among traders continues to widen regarding whether XRP will experience a larger breakout.
Position losses and liquidity pressures are drawing attention.
A statistic from Santiment has been widely cited in the market. The data shows that active XRP traders over the past 30 days have an average unrealized loss of approximately 47%. Meanwhile, XRP's 30-day MVRV has fallen to its lowest level since December 2020. This metric is typically used to measure whether holders are generally in a profitable or loss-making position.
Another viewpoint suggests that XRP liquidity on Binance has fallen to its lowest level since 2020. With such thin liquidity, if leverage continues to accumulate, prices could experience more volatile two-way fluctuations: an upward breakout could trigger short covering, while a further downward breakout could lead to larger-scale liquidations.
With prices falling below $1.35, market sentiment has been described as entering a state of "extreme fear." However, analysts believe this is not just a problem with XRP alone; Bitcoin has been fluctuating around the $74,000 support level recently, and changes in ETF fund flows are also amplifying market volatility.
Unlike the SEC lawsuit stage in 2020
Foreign media, citing analysis, suggest that directly comparing the current market situation to that of December 2020 is not entirely accurate. At that time, the U.S. Securities and Exchange Commission sued Ripple and its executives, accusing them of raising $1.3 billion through unregistered XRP sales. Following the announcement, the price of XRP quickly plummeted from approximately $0.54 to nearly $0.17.
Analysts believe that the previous drop was a sudden regulatory shock that dealt a concentrated blow to market expectations. Currently, XRP mainly faces factors such as insufficient liquidity, high leverage, and a weakening overall market.
The report mentions that reasons supporting this assessment include Ripple's continued efforts in institutional partnerships, cross-border payment business, and banking-related initiatives in recent years. Meanwhile, legal developments surrounding XRP's trading attributes in the secondary market are also seen as significantly different from those in 2020.
