SKN | XRP Slides 9% After Breaking Below $1.36, Erasing Recent Relief Rally

XRP fell approximately 9% after decisively breaking below the $1.36 support level, effectively wiping out its recent relief rally and triggering renewed downside momentum. The move comes as broader crypto markets trade in a consolidation phase, with Bitcoin hovering near $60,000 and total market capitalization around $2.3 trillion.

The breakdown underscores the fragility of short-term rebounds in high-beta altcoins, particularly as macro liquidity conditions remain constrained and derivatives positioning becomes increasingly tactical.

Technical Breakdown and Volume Spike

The breach of $1.36—a level widely viewed as near-term support—accelerated selling pressure, pushing XRP toward the $1.20–$1.25 range. Spot trading volumes surged above $2 billion over 24 hours, significantly exceeding recent daily averages and signaling active repositioning rather than passive drift.

In derivatives markets, open interest declined modestly following the drop, suggesting partial liquidation of leveraged long positions. Funding rates turned slightly negative, reflecting a shift in short-term sentiment. For institutional traders, such breakdowns often trigger algorithmic risk adjustments tied to technical thresholds.

Market Structure and Broader Context

XRP had previously staged a modest recovery alongside improvements in broader crypto sentiment. However, altcoins remain sensitive to fluctuations in Bitcoin dominance, which currently stands above 50%. When capital rotates back toward large-cap assets, mid-tier tokens frequently experience amplified volatility.

Regulatory developments surrounding Ripple-related litigation have historically influenced XRP’s price trajectory. While no immediate legal catalyst drove the decline, the token’s positioning remains closely tied to institutional confidence in regulatory clarity and cross-border payments adoption narratives.

Investor Psychology and Strategic Positioning

Relief rallies in digital assets often attract short-term momentum traders seeking quick rebounds after oversold conditions. When key support levels fail, however, those same participants may rapidly unwind exposure. Behavioral finance research shows that breakdowns below widely observed price levels can intensify selling due to stop-loss clustering.

Longer-term holders may focus on ecosystem metrics, liquidity depth, and ongoing development within the XRP Ledger. Nevertheless, short-term volatility tends to dominate during periods of technical deterioration, particularly when macro catalysts—such as interest rate expectations—limit broader risk appetite.

Looking ahead, XRP’s ability to stabilize will likely depend on reclaiming former support zones and restoring positive momentum in derivatives positioning. Continued weakness in altcoin flows or rising macro volatility could prolong consolidation, while improved liquidity conditions and stronger network activity may support recovery. For professional investors, monitoring volume trends, funding rates, and broader market dominance metrics will remain central to assessing whether this move marks a temporary shakeout or a deeper structural correction.