Impacted by bitcoin's sudden surge and plunge, XRP dropped 5%, causing volatility in the cryptocurrency market.

On Wednesday, XRP experienced a sharp decline, breaking below the $1.92 support area due to intensified selling pressure during the US trading session, alongside heightened volatility across cross-asset markets.

This move coincided with a sudden reversal in bitcoin, US equities, and AI-related stocks, leading to reduced liquidity and a reset of derivatives positions, putting altcoins at risk.

News Background

• During early US trading, the cryptocurrency market saw intense volatility, with bitcoin prices surging from $87,000 to over $90,000 before retreating back to around $87,000.
• This reversal coincided with a sharp drop in AI-related stocks, with several companies including Nvidia, Broadcom, and Oracle seeing their share prices fall by 3% to 6%, dragging the Nasdaq index down by over 1%.
• Reports indicated that Blue Owl Capital withdrew its investment from Oracle's $10 billion data center project, putting pressure on risk assets related to AI infrastructure and weakening market sentiment.
• According to CoinGlass data, the sudden price swings triggered over $190 million in crypto liquidations within four hours, with $72 million in long positions and $121 million in short positions being wiped out.
• As derivatives-driven capital flows had a greater impact on medium-beta altcoins during the spike in volatility, XRP underperformed the broader market.

Technical Analysis

• Support levels: Immediate support at $1.90, currently the first line of defense; secondary support at $1.75 to $1.64, entering a deeper liquidity zone if the $1.90 support fails.
• Resistance levels: Short-term resistance at $1.94-$1.99, with former support turning into a supply zone; psychological resistance at $2.00, which has been effectively blocked.
• Volume structure: The resistance near $1.9885 marked the day's highest trading volume. The surge in volume indicates distribution rather than passive selling. There are currently no signs of seller exhaustion.
• Trend structure: Breaking below key Fibonacci retracement levels, the structure has turned bearish; the formation of lower highs before the pullback indicates weakening momentum; consolidation has ended with a downward breakout.
• Momentum check: The breakout above $2.00 failed to form a bull trap; price fell below $1.94, and the downtrend remains intact.

What Traders Are Watching

• Whether $1.90 can hold—if this level is decisively broken, prices could quickly fall to the $1.75-$1.64 range.
• If the price retests $1.94-$1.99, it would indicate the trend is set to continue.
• Whether macroeconomic volatility will subside, or continue to force cross-asset deleveraging.
• Derivatives positions after $190 million in liquidations—the direction depends on who reopens positions first.
• If bitcoin stabilizes around $87,000, how will XRP perform relative to BTC?