XRP News: XRP Price Drops 5% Amid Market Sell-Off and Key Resistance Rejection

XRP is underperforming the broader crypto market, falling 5% on February 24 to trade at $2.49. The price decline follows a rejection from the $2.60 resistance level, raising concerns about a potential deeper correction in the short term.The downturn is part of a wider market sell-off, with the global crypto market cap dropping 1.8% to $3.15 trillion. Other major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), have also suffered losses.XRP Faces Selling Pressure Amid Derivatives LiquidationsXRP’s decline coincides with heavy liquidations in the crypto derivatives market. Data from CoinGlass shows that over the past 24 hours, more than $234 million in leveraged crypto positions have been liquidated, with $187 million in long positions.For XRP futures, nearly $10.1 million worth of positions were liquidated, with $9.4 million in long positions. The forced selling of these leveraged positions has contributed to accelerated downward pressure on XRP’s price.Adding to bearish sentiment, XRP's funding rate has dropped from 0.25% per week on February 22 to 0.04% on February 24, signaling reduced demand for long positions and growing caution among traders.XRP Faces Key Technical Resistance at 50-Day SMAXRP’s recent 11% decline from February 15 to February 24 saw it fall below the critical 50-day simple moving average (SMA) at $2.73.Key Support and Resistance Levels to WatchSupport: XRP is currently testing the 100-day SMA at $2.40, which could provide a short-term price floor.Resistance: The 50-day SMA at $2.73 is now a major hurdle. If XRP fails to reclaim this level, a drop to $2.00 could be likely.The Relative Strength Index (RSI) stands at 41, indicating that bearish momentum is increasing, but XRP is not yet in oversold territory.Can XRP Reverse Its Bearish Trend?To regain bullish momentum, XRP needs to close above $2.40 and break past $2.73 to invalidate the bearish outlook. According to analyst Dark Defender, XRP must rise above $2.77 to confirm the continuation of its bullish structure and target its multi-year high of $3.40.Until then, XRP remains at risk of further declines if selling pressure persists and key resistance levels hold, according to Cointelegraph.