XRP's recent price drop has left investors wondering what will happen next. On March 28, the cryptocurrency broke below the $1.35 support level, which had been holding strong through most of March.
The breakdown was triggered by the expiration of $14.16 billion in quarterly options on Deribit on March 27. This added significant selling pressure to the market, causing XRP's price to drop. The cryptocurrency is now trading around $1.31-$1.34, which is below the trendline that had supported its recovery from the $1.12 low in early February.
The next key support level for XRP sits at $1.28, where the 23.6% Fibonacci retracement and a concentrated cost basis cluster converge. If this level holds, it could shape the next few weeks of price action. However, below $1.28, there is very little support until $1.11.
The technicals are also pointing to a bearish trend for XRP. The MACD is below its signal line with the histogram expanding to the downside, and the RSI sits at 41. Additionally, XRP ETF products posted zero flows on March 27, indicating that there was no buying interest in the market.