XRP Plunges Below $2 as $584M in Long Positions Get Wiped Out – Are Bulls Losing Control?

XRP has tumbled 4.3% in the past day, breaking through the critical $2 psychological barrier amid broader cryptocurrency market turbulence. With a staggering $584 million in long liquidations, traders are questioning whether this marks the beginning of an extended bearish phase for the popular altcoin.

XRP is facing significant downward pressure as the cryptocurrency market experiences a sharp correction, with the token sliding 4.3% over the last 24 hours to fall below the psychologically important $2 threshold. The decline marks XRP's weekly low and has sparked concern among investors about the sustainability of the recent rally.

The selloff has been particularly brutal for leveraged traders, with long liquidations reaching an eye-watering $584 million. This massive wave of forced selling indicates that many bullish traders were caught off-guard by the sudden reversal, amplifying the downward momentum through cascading liquidations. When highly leveraged positions are liquidated en masse, it creates additional selling pressure that can accelerate price declines.

The $2 level has served as a crucial support zone for XRP in recent weeks, and the failure to hold this price point raises questions about the strength of the underlying bid. Technical analysts are now watching closely to see whether this breakdown represents a temporary shakeout or the beginning of a more sustained bearish trend.

Broader market conditions haven't helped XRP's case. Bitcoin and other major cryptocurrencies have also experienced notable declines, suggesting that macro factors rather than XRP-specific news are driving the current weakness. Risk-off sentiment appears to be dominating across crypto markets, with investors reducing exposure to volatile assets.

However, declaring the start of a bear market may be premature. Cryptocurrency markets are notoriously volatile, and sharp corrections are common even within broader uptrends. XRP has demonstrated resilience in the past, bouncing back from similar drawdowns when market sentiment improves.

For bulls to regain control, XRP will need to reclaim the $2 level decisively and demonstrate that buyers are willing to step in at current prices. Key resistance levels to watch include $2.10 and $2.25, where previous support may now act as overhead resistance.

Investors should monitor trading volume, funding rates on derivatives exchanges, and broader market sentiment indicators in the coming days. These metrics will provide crucial insights into whether this is a temporary correction or the beginning of a more prolonged downturn for XRP and the wider cryptocurrency market.