Why did XRP collapse? The meaning of the $1.40 breakdown

▲ XRP/AI-generated image ©

XRP (Ripple) is seeing its short-term downtrend strengthen, pushed by selling pressure after breaking the key support level of $1.40.

According to CoinMarketCap, a cryptocurrency market data aggregator, as of April 28 (local time), XRP was trading at $1.39, down 2.07% over 24 hours, recording a larger decline than the market average. Analysts suggest that the technical structure has shifted downwards, especially after the $1.40 support level broke.

The core of this decline is a technical breakdown. While $1.40 was a psychologically and technically significant support level, its breach with increased trading volume led existing long positions into loss territory. This triggered additional selling pressure, accelerating the downward trend.

The market environment also played an unfavorable role. While the total cryptocurrency market capitalization decreased by approximately 1.2%, Bitcoin's dominance rose, nearing 60%. As funds moved into Bitcoin, capital outflow was observed across altcoins, and XRP showed relative weakness with a larger decline than Bitcoin.

In the short term, the $1.30 to $1.35 range is identified as a key support area. If this range breaks, further declines to $1.20 could be possible. Conversely, to invalidate the bearish scenario, a re-break above $1.40 with accompanying trading volume is necessary.

The market currently assesses that a selling-dominant trend persists, with the direction leaning downwards. Changes in Bitcoin's dominance and price reactions around $1.35 are considered key variables that will determine future trends.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*