XRP lost its grip and crashed below the psychological $2 support level after the spot ETF net inflows crashed drastically. However, the coin will once again recover and gain this level.
XRP plummeted from as high as $3.44 to below $2 within the past six months. The crash happened in two stages. One went from $3.44 to $2.75, while the other went from $2 to $1.9.Â
During the 6-month-long crash, the coin tried to hold on to the support level at $2.75 multiple times in a row. However, the mounting bear pressure was too much for the support level to hold the prices.
As such, the coin continued crashing further below the $2.75 until it found support near the $1.9 support level. XRP might have held its shape at $2.75, but the death cross made it crash below the $2 price level. When the death cross occurs, it’s quite a death sentence, as the shorter time moving average (50-day MA) crosses the 200-day MA. This is a classic indicator that the prices will crash further.
XRP crashed below the $2 level after the death cross and held on to dear life at the $1.9 support level. But why did XRP crash so hard? The drop in funds flowing into the ETF is one of the reasons.
The ETF inflows drastically dropped from as high as $250 million in mid-November to $8.5 million within the past 30 days. When funds flow into an ETF, the issuer of the ETF has to buy the asset to support the prices; however, this was not the case for XRP.
Investors drew their funds out of the ETF, making it harder for the XRP prices to rise again. However, $1.9 support is quite a reliable level where the prices have a chance to recover.Â
For 13 months, the coin has held this support level and kept the prices above $2; therefore, XRP will once again hold the prices above this level.Â
