TL;DR
- XRP’s market capitalization fell by $10.85 billion, the largest capital loss among the Top 10 digital assets.
- The drop was accelerated by general market weakness and the historic rise in Japanese bond yields.
- The current price of $2.04 is below key moving averages, signaling a bearish technical weakness.
The volatility of the crypto market is evident. Amid an intense wave of selling that is hitting the sector, XRP suffered some of the sharpest losses. In the last 24 hours alone, the digital asset wiped out more than $10 billion of its value.
At the time of writing this note, XRP’s market capitalization stood at $123.15 billion, a significant drop considering the $134 billion registered the previous day.
This shocking capital loss of XRP, amounting to $10.85 billion, makes it the biggest loser among the top ten digital assets by market value. The asset fell almost 7% in 24 hours, with the price trading at $2.04, erasing much of the momentum it had attempted to rebuild last week.
Technically speaking, XRP is signaling bearishness. Its current price is well below the key simple moving averages (SMAs): 13.6% below the 50-day SMA ($2.36) and 22.9% below the 200-day SMA ($2.65).
However, the 14-day Relative Strength Index (RSI) remains at 45.8, in neutral territory, suggesting a phase of consolidation without immediate oversold pressure.
Causes of the Sell-Off and the Fundamentals Paradox
The liquidation of XRP is just the tip of the iceberg, as the market experienced broader declines. For example, Bitcoin (BTC) wiped out billions of dollars in 24 hours. A large part of this pressure was driven by a historic move in the Japanese bond market, where the yield on 2-year Japanese Government Bonds breached the 1% threshold for the first time since 2008.
This signals growing expectations of a Bank of Japan (BOJ) rate hike, which in turn pressures risk assets downwards.
It is now evident that XRP’s market structure weakened despite solid institutional developments. The asset experienced significant inflows into its spot exchange-traded funds (ETFs), which reached $666.6 million.
Furthermore, exchange reserves also fell 45% over the last 60 days, indicating sustained accumulation. In fact, large holders added 150 million XRP since November 25, underscoring long-term confidence.
Ultimately, these fundamental support flows were not enough to counter the aggressive wave of selling, with derivatives liquidations and large-scale spot sales accelerating the loss of XRP capitalization.
This leaves the asset vulnerable to losing the key $2.00 support level, depending heavily on how major assets like Bitcoin react to the current market recession.
