XRP Just Lost $1.35. How Low Can It Go?

XRP has cracked through two support levels in quick succession, and with no established floor between here and its August low, the next few daily closes could set the tone for months to come.

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XRP (CRYPTO:XRP) has fallen below the critical $1.35 to $1.38 range that we previously identified. XRP is at $1.31, just shy of $1.32, which we previously marked as a key level if this range breaks. Over the past 24 hours, XRP has dropped by 5.0%, and it’s down 6.3% over the last week.

This decline is part of a larger trend affecting the entire cryptocurrency market. Nearly $1 billion in leveraged positions were liquidated as both Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) saw significant drops alongside XRP. XRP is currently trading 64.1% below its all-time high of $3.65.

With the loss of this critical price zone and now slipping below a second support level, the question remains. How low can XRP go?

Liquidations Drove XRP’s Drop, but Holder Selling Could Keep It Going

A liquidation occurs when an exchange forces a trader to close a leveraged position because the price has fallen below a certain threshold. This happens when traders borrow money to buy more XRP than they can afford. If the price drops too much, exchanges automatically sell positions to cover the loans, which can trigger more sell-offs and push the price even lower.