XRP wipes over $5 billion in less than 24 hours

XRP price crashed on Thursday, February 19, erasing more than $5 billion in market value in less than 24 hours amid broader market weakness.

Specifically, the token’s market capitalization dropped from $90.49 billion on February 18 to $84.88 billion at press time, marking a sharp $5.61 billion contraction, as per CoinMarketCap.

As a result, XRP stands as the biggest daily loser among the top 20 cryptocurrencies by market cap, down 4.55% on the day reinforcing its bearish near-term outlook.

The same picture emerged earlier today when XRP funding rates dropped nearly 80%, showing continued pressure in the derivatives market.

At the same time, a 5.35% drop in open interest emerged as another bearish signal that the market was betting on further downside.

XRP slips below key levels

The sell-off gathered further momentum after XRP slipped beneath its daily pivot at $1.44 and remained capped below both its 7-day simple moving average (SMA) at $1.45 and the 30-day average near $1.62. 

Similarly, the relative strength index (RSI) sits at 39.02, edging into oversold territory, while 24-hour trading volume rose almost 4%. This combination suggests the move was driven by active selling rather than thin liquidity.

As mentioned, the weakness has been amplified by a risk-off turn across the wider crypto market. Notably, the total market capitalization fell about 1.9% over the session, with Bitcoin (BTC), for example, also down roughly 1.9%

Against that backdrop, XRP’s steeper drop simply exaggerated the broader downturn. For sentiment to shift, traders will be watching closely for signs of selling exhaustion. For example, a stabilization in Bitcoin above the $65,000 level could help support altcoins.

Naturally, a sustained close back above $1.44 on the XRP charts, especially if accompanied by rising volume would, suggest the recent breakdown was a false move. Until then, all signs point lower, with the $1.35 support zone increasingly in focus.

Featured image via Shutterstock