XRP Falls Despite No Specific Bad News, Can It Hold the Final Support at $1.39?

▲ Ripple (XRP) ©

XRP (Ripple) is under threat of losing its key support level at $1.39 as it takes a direct hit from extreme fear sweeping the cryptocurrency market and a growing aversion to altcoins, despite the absence of any distinct negative developments specific to the token.

According to CoinMarketCap on February 27 (local time), XRP fell 5.61% over the past 24 hours to $1.40, significantly underperforming the broader market’s average decline. As the total cryptocurrency market capitalization shrank by 2.45% and investor sentiment remained trapped in “Extreme Fear” (index 16), capital flowed toward relatively safer blue-chip Bitcoin (BTC), reflecting a typical risk-off environment. Bitcoin limited its losses to 2.17%, while its market dominance surged to 58%, clearly demonstrating this capital rotation.

No notable negative factors, such as regulatory issues or network failures within the XRP ecosystem, have emerged during this downturn. Social media sentiment indicators remain somewhat positive at 5.11 out of 10. However, this appears to reflect speculative optimism rather than conviction based on fundamentals, proving insufficient to withstand the mounting selling pressure. Ultimately, the current weakness stems not from any deterioration in XRP’s intrinsic value but from broad macro-driven fear weighing heavily on the altcoin sector.

Technical indicators are also casting a shadow over the outlook. The price has slipped below the 7-day and 30-day moving averages, currently in the $1.40 to $1.44 range, signaling a clear bearish structure. The Relative Strength Index (RSI), at 41.11, is tracing a distinct downward curve, while the MACD histogram remains in negative territory, reinforcing strong downward momentum.

Market attention is now focused on whether XRP can defend the critical $1.39 level. Only a firm daily close above this Fibonacci support zone and a recovery beyond $1.44 would break the prolonged downtrend and open the door for a potential reversal. If the $1.39 support collapses, however, there is a high risk of a swift decline toward the psychological support level of $1.30, potentially making XRP a major casualty in a broader altcoin sell-off.

Disclaimer: This article is for investment reference purposes only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.