XRP (Ripple) $2 Level Faces Risk Amid Fresh Market Sell-off – What's Next?

Ripple's cryptocurrency has fallen 4.55% to $2.07 in the last 24 hours as cryptocurrencies face renewed selling pressure, with XRP's critical $2 psychological support level now under threat.

XRP Price Declines As Market Sentiment Sours

Cryptocurrencies, including XRP, experienced downward pressure in early Wednesday trading as fresh selling emerged across markets. While Bitcoin (BTC) and other major cryptocurrencies dipped over 3%, XRP faced a steeper decline of 4.55% in the last 24 hours, bringing its price to $2.07.

This decline continues a pattern of steady losses for XRP since April 13, with the digital asset recording losses in two out of three trading days. Despite this recent downtrend, XRP still maintains a 14% gain on a weekly basis, showing resilience amid the broader market volatility.

The current sell-off comes as market sentiment turned negative late Tuesday following a drop in Nvidia shares during after-hours trading. This negative sentiment carried over into Wednesday's session, with the cryptocurrency market suffering $240 million in liquidations over the past 24 hours, according to data from CoinGlass.

XRP ETF Development Provides Fundamental Support

Despite the price decline, XRP's fundamental outlook received a boost when ETF provider ProShares amended its spot XRP ETF filing on Tuesday. The updated filing targets an April 30 debut date for what would be a first-of-its-kind XRP exchange-traded fund in the United States.

This development represents a significant potential milestone for XRP, as ETF approval could bring institutional investment and greater mainstream adoption to the digital asset. The timing of this filing amendment is particularly noteworthy as it comes during a period of market uncertainty, potentially providing some fundamental support for XRP amid technical selling pressure.

XRP Technical Analysis: Critical $2 Support Under Threat

The cryptocurrency market is now closely monitoring XRP's behavior around the $2 mark, which represents both a psychologically significant level and an important technical support zone. How XRP performs at this threshold could determine its price trajectory in the coming days and weeks.

If XRP successfully defends the $2 level and buying volume returns, the digital asset could potentially rebound toward the $2.23 resistance barrier, which coincides with its 50-day Simple Moving Average (SMA). This would represent a positive short-term outcome for XRP holders.

However, failure to maintain support at $2 could open the door to additional declines, potentially driving XRP down to the $1.61-$1.72 support zone, where buying interest has emerged in previous market cycles. A breakdown below $2 would likely exacerbate selling pressure, especially if the broader cryptocurrency market fails to stabilize.

Economic Factors Influencing XRP and Broader Markets

Market participants are awaiting key economic data and insights that could influence cryptocurrency prices, including XRP. Wednesday's U.S. retail sales report and Federal Reserve Chairman Jerome Powell's scheduled speech are expected to provide additional economic context that could affect market sentiment.

The March retail sales report from the United States will be released Wednesday morning Eastern Time, with Dow Jones economists predicting consumer spending to rise 1.2% for the month, a significant increase from February's 0.2% growth. Strong retail numbers could potentially impact the Federal Reserve's monetary policy considerations.

Additionally, Federal Reserve Chairman Jerome Powell is set to speak at the Economic Club of Chicago on Wednesday about his outlook for the U.S. economy. Powell's comments will be closely analyzed for any indications regarding interest rate policy, which has been a significant driver of both traditional and cryptocurrency markets in recent months.

These macroeconomic factors, combined with crypto-specific developments like the ProShares XRP ETF filing, will likely continue to influence XRP's price action as the digital asset navigates this critical $2 support level amid the broader market sell-off.