XRP slipped to $0.99 during recent trading sessions, marking a notable departure from the price levels established following Donald Trump's presidential victory in November 2024. The asset’s decline comes as selling pressure deepens across the broader crypto market, effectively unwinding one of the most significant psychological and technical thresholds for the token. Traders are witnessing a rapid build-up of leverage, with bearish bets surging as the 'Trump trade' momentum begins to wane.
The downward trajectory was exacerbated by reports of an exploit involving the theft of 200,000 XRP tokens. Although the volume of the theft is modest compared to the asset's multi-billion dollar market capitalization, the news has spiked investor anxiety and contributed to the break of the dollar support level. This security concern, coupled with a buildup in short interest, suggests that the market is currently favoring sellers in the immediate term.
From a technical perspective, the loss of $1 support may lead to a retest of lower demand zones near $0.88, where buyers previously stepped in. The surge in open interest on the short side indicates that the market is anticipating a deeper correction rather than a quick bounce. Investors should keep a close eye on liquidation data; a sudden squeeze could occur if the price manages to reclaim $1, but for now, the path of least resistance appears to be downward.
Looking forward, market participants should remain vigilant regarding the regulatory climate in the U.S., which has historically been a primary driver for Ripple's valuation. While the geopolitical outlook remains relatively stable for the sector, localized technical failures or security breaches like the one reported can have outsized impacts on specific assets during periods of thin liquidity.