📉 XRP exposes deeper correction risks after breaking through the price level

XRP, $XRP Ledger's native cryptocurrency, experienced a massive sell-off of over 20% on Thursday, with the current trading price at $1.88. The selling pressure was triggered by the latest comments from Treasury Secretary Scott Bessent, who clarified that he does not have the authority to bail out cryptocurrencies. However, as Bitcoin fell below the $70,000 mark, bearish momentum intensified, and chain liquidation occurred in the derivatives market.
Breaking through the price level highlights rising risks in the XRP market
The cryptocurrency market is currently experiencing one of its worst weeks since the FTX collapse in 2022. By early February 2026, market participants had undergone a massive sell-off, wiping out nearly $500 billion dollars in total value in less than a week.
$XRP's market cap just fell below a key threshold, the realized price. Investors in an upward trend are trying to hold this level, but a break indicates that the bears are in control, and the price is likely to decline.
This indicator calculates the average purchase cost of all active tokens based on the value of the last transfer recorded on the blockchain network.
This metric is significant in gauging holder sentiment. When the price remains above this average, it generally results in widespread profits, encouraging market stability and a wait-and-see attitude among holders. Conversely, falling below this level indicates that the collective has unrealized losses, which may increase market uncertainty, trigger more liquidations, and make the market more susceptible to prolonged downturns.
From a broader perspective, this realized price serves as an indicator of the overall health of the cryptocurrency market. It aggregates on-chain data and reflects points where supply and demand pressures have noticeably shifted. Historical patterns show that breaking below this line often signals a change in trading environment, with previous support zones collapsing and a new downtrend beginning to form.
‍#XRP | #Ripple $XRP