XRP wipes out $15 billion from its market cap in a week

XRP has lost approximately $15 billion in market capitalization over the past seven days, which dropped from $132 billion on January 13 to $117 billion at the time of writing, January 20.

XRP’s price also remains in a rut, having fallen nearly 7% to $1.92 over the same period, according to data retrieved by Finbold from CoinMarketCap.

XRP price and market. Source: CoinMarketCap

Now, the digital asset faces another headwind, as mid-term holders are unloading near breakeven. As such, the market structure resembles the scenario from February 2022, when investors who had held for six to twelve months began selling as the price approached their $2 cost basis. 

Last year, every retest of this level was met with heavy distribution. With the token now trading at $1.92, however, that support zone has turned into psychological resistance. 

XRP market cap falls 

Notably, XRP’s relative strength index (RSI) at 34.99 approaches oversold territory, while the price has broken below the 78.6% Fibonacci level at $1.94, showing growing downside pressure as sellers defend former support as resistance

At the same time, the token’s trading volume has dropped more than 17% to around $3 billion, suggesting limited buying strength, or more likely an attempt to absorb selling pressure. That is, the failure to reclaim $2 has led traders to try and defend that level as resistance rather than support.

The falling XRP market cap is also a symptom of negative market dynamics overall. The total crypto market value dropped from $3.30 trillion on January 14 to $3.07 trillion at press time, shedding $230 billion.

Furthermore, the CoinMarketCap Altcoin Season Index is now at 26, down 16% on the week. The figure reflects the above-mentioned investor preference for Bitcoin’s, as the flagship crypto remains more stable amid all the uncertainty over U.S. policy and Treasury yields.

Accordingly, XRP faces weakening technical structure and unfavorable macro flows. The $1.96 zone remains the most important short-term, as holding above it would keep the door open for a more substantial recovery attempt. A daily close back above $2, however, is needed for buyers to get back in control. 

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Source: https://finbold.com/xrp-wipes-out-15-billion-from-its-market-cap-in-a-week/