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Ripple Token Falls to $1.88 as Broader Crypto Weakness Persists
XRP has recently dropped below the critical $2 support level, marking its first daily close under this threshold in three weeks. “After holding above $2 despite the persistent downtrend, XRP eventually closed below the support on Dec. 14,”noted JA Maartunn, CryptoQuant’s community analyst. Previously, XRP had only closed below $2 on Nov. 22 and April 10, highlighting the significance of the recent decline.
Ripple Co-Founder Sale Highlights
Maartunn also referenced a prior disclosure regarding Ripple co-founder Chris Larsen, who sold approximately $200 million worth of XRP tokens when the asset traded above $3 in July. Maartunn described XRP holders at the time as “exit liquidity.” This comment drew criticism from parts of the XRP community, with some noting that major executives, including tech CEOs, routinely sell shares without indicating structural issues. Maartunn emphasized that he intended to present a cautionary perspective: “But sure… nothing to worry about, right?”
Broader Market Factors at Play
Despite the focus on Larsen’s sale, XRP’s price decline largely reflects overall market weakness. The token has fallen 48% from its July peak of $3.6. In comparison, Bitcoin has retreated 30% from $123,000, and Ethereum has dropped 41% from its August high of $4,955. Year-to-date, XRP’s loss of 9.46% shows more resilience than Ethereum’s 11.93% decline but underperforms Bitcoin, which is down 7.64%.
The global crypto market has lost over $1.36 trillion since its peak of $4.27 trillion on Oct. 6. XRP accounts for $74.61 billion of these losses, while Ethereum represents $220 billion, and Bitcoin bears the largest portion, shedding roughly $780 million.
Technical Indicators
XRP’s daily chart shows that it has only closed below $2 four times this year. Historically, such closes have coincided with RSI levels near 30, often followed by short-term rebounds. Currently, the RSI stands at 34, leaving uncertainty over whether XRP will recover as it has in past instances.
Overall, XRP’s current weakness is influenced by broad market trends rather than isolated sales, underscoring the ongoing volatility in major crypto assets.
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