XRP dropped 19% this week and the dip has pushed it 33% below its January high as the crypto industry experiences downward pressure.
While XRP’s $2 support level remains intact for now, market indicators suggest this threshold may not hold much longer.
The most eagle-eyed investors are watching big-name XRP alternatives like Solaxy ($SOLX) and Cardano – but XRP might also offer an interesting chance to buy the dip.
$23.6M bearish wave dominates XRP market
Sunday witnessed an overwhelming liquidation imbalance in the XRP market, with $23.61 million in long positions wiped out – a stark comparison to shorts, with just $3.94 million liquidated. The difference clearly shows that sellers were currently influencing XRP’s price movement.
CoinGlass data made the current sentiment appear decidedly bearish as it revealed $375 million in open short interest against $125 million in long positions. The 3:1 ratio indicated that there would be notable downward pressure in the coming months.
Sacks’ clarification on crypto stockpile crushes XRP Momentum
President Donald Trump announced that his ‘Executive Order on Digital Assets’ directed the Presidential Working Group to move forward with a crypto strategic reserve that included XRP, SOL, and ADA. However, the U.S. ‘crypto czar’ David Sacks later clarified that the government was only going to buy Bitcoin and store confiscated altcoins.
The clarification by Sacks prompted a reversal of XRP’s price which stopped its brief rally and accelerated its downward trajectory. However, XRP has outperformed other altcoins during the market downtrend despite this negative turn. 5he XRP token has demonstrated remarkable resilience at the $2 support level.
XRP at Critical $2 Crossroads – Bullish Breakout or Collapse Ahead?
XRP continues to maintain its position above the $2 threshold which has become the token’s cornerstone of divergent price predictions.
Analyst Solberg Invest identified the $2 level as an important support zone for XRP, saying that it could help generate the token’s significant trading activity. XRP could gain 120% from its current price to hit the $4.4 target if it successfully defends the $2 level.
Analyst Crypto Anbu highlighted a concerning head-and-shoulder formation on XRP’s chart. This classic bearish pattern suggests a possible decline to $1.5 or below if prices break beneath the $2 neckline—a minimum 25% drop.
Altcoins offering higher growth potential with lower downside risk make XRP’s risk-reward ratio appear questionable for investors considering this dip.
3 Explosive Altcoins to Outperform XRP – 50x Gains or More?
XRP’s towering $126 billion valuation – and its status as the third-largest cryptocurrency – creates a fundamental challenge for potential investors. This enormous market cap substantially restricts growth opportunities, while maintaining considerable vulnerability to market corrections.
A hugely popular newcomer called Solaxy ($SOLX) is generating intense interest by developing an innovative Layer 2 (L2) solution for the Solana ecosystem. This ambitious project aims to dramatically enhance Solana’s transaction processing capabilities with superior processing speeds, reduced fees, and reliable scalability.
During its current fundraising phase, Solaxy has attracted $25 million from early backers, and offers an exceptional 159% annual yield through staking rewards.
Market observers note that compared to XRP’s and Solana’s massive valuations, this fast-rising project offers potentially life-changing returns between 1,000% and 5,000% (or perhaps even more) for early participants.
It also has the potential to attract builders from across trending Web3 verticals such as AI, GameFi, DeFi, NFTs, and meme coins – meaning that it could stand to benefit from bullish news within a huge range of industry sectors.
Cardano is a notable XRP alternative despite being only one-fifth of XRP’s value ($26B). The platform has gained renewed attention following reports that founder Charles Hoskinson met with President Trump shortly before the latter’s Crypto Strategic Reserve announcement.
According to Hoskinson, the recent partnership between Cardano’s Midnight initiative and OpenZeppelin was transformative for the Cardano ecosystem.
Hedera formed a strategic partnership with SWIFT to transform cross-border transactions despite its low price of $0.2 and total valuation of $8.8 billion.
Hedera’s fast, secure, and energy-efficient technology allows it to seamlessly connect with existing financial systems. This integration means that Hedera has better chances of appreciating in value compared to what XRP can realistically achieve in today’s market.
Overall, while Cardano and Hedera offer solid investment alternatives to XRP. Solaxy’s groundbreaking Layer 2 technology and remarkable staking rewards also make it particularly worthy of attention for investors seeking maximum growth potential.
