Ripple’s XRP has plummeted to $1.44, marking its lowest point since November 2024, amid broad risk aversion triggered by Bitcoin’s recent decline.
The cryptocurrency has broken below a key support level around $1.60, a former demand zone from April’s market sell-off, leaving limited technical support until the psychologically significant $1.00 mark. The move signals increased bearish sentiment among traders.
Options activity on Deribit indicates rising demand for downside protection, further fueling concerns over a potential deeper correction. While XRP initially rallied following Donald Trump’s election victory, the momentum waned above $3.50, peaking at $3.65 in July last year. Since then, the token has been in a steady downtrend, accelerating in recent weeks.
Support levels are now under threat, with XRP trading firmly below the $1.60 level where buyers previously entered to halt declines. The recent break below this support suggests sellers have gained control, and a clear “air pocket” now exists down to $1.00, with scant historical support or trading volume between the current price and that psychological threshold.
Traders appear to be positioning for further declines. Data from Deribit shows increased demand for put spreads—bearish options strategies—and strangles, which anticipate heightened volatility, in the past 24 hours.
Options contracts give traders the right, but not the obligation, to buy or sell the underlying asset at a set price in the future. Put options, which are currently in demand, indicate traders are betting on further downside, while call options reflect bets on potential rebounds.
Analysts warn that unless XRP finds support soon, it may continue its downward trajectory toward $1.00, with the market sentiment increasingly leaning bearish.
