XRP dropped to $1.35 on Friday, extending a four-day losing streak that has taken the token 15% lower from its March peak of $1.61. The decline makes XRP the worst performer among the top five cryptocurrencies by market cap this week, with Ethereum down 4.4% and Bitcoin shedding 4.4% over the same period. The broader market context is providing no support: the Fear & Greed Index sits at 13 — deep in extreme fear territory — and the U.S.–Iran conflict entering its 28th day continues to keep risk appetite suppressed across global markets.
What the Data Shows
The sell-off is not orderly. CoinGlass data shows $6.94 million in XRP liquidations over 24 hours, with $6.41 million coming from long positions — a clear sign that leveraged bulls are being forced out rather than choosing to exit. The selling intensified sharply in the final hour of Thursday’s session, with volume spiking in minutes.
What makes the setup unusual is that open interest has risen as the price has fallen. On March 25, XRP traded at $1.42 with open interest at $886 million. By March 26, the price had dropped to $1.36 while open interest climbed to $946 million. The OI-weighted funding rate turned negative at -0.0086, confirming that the majority of new positions are shorts. Traders are increasingly betting against a recovery — not closing longs.
“Heavy, rapid selling with a spike in volume points to forced liquidations and a fragile market structure rather than orderly profit-taking.”
— CoinDesk Markets, March 27, 2026
— CoinDesk Markets, March 27, 2026
The Levels to Watch
The immediate support zone sits between $1.34 and $1.36. A clean break below this range would shift attention toward $1.30 and then $1.25. On the upside, XRP needs to reclaim $1.40 to ease near-term pressure, with the 50-day EMA at $1.48 as the next meaningful resistance.
The crowded short positioning carries its own risk. Liquidation heatmap data shows approximately $314 million in short positions clustered between $1.375 and $1.405. If XRP pushes into that range — triggered by a geopolitical de-escalation or a broader market recovery — forced short covering could produce a sharp spike upward. The setup is volatile in both directions.
XRP ETF cumulative inflows stand at $1.21 billion but activity has stalled in recent days, reflecting institutional caution. With the April 6 Iran deadline now the next macro catalyst for the entire crypto market, XRP’s direction in the coming week will likely follow the broader risk tone rather than any asset-specific trigger.
Sources: CoinDesk, FXStreet, CoinGlass, The Crypto Basic. Prices as of March 27, 2026. This article is for informational purposes only and does not constitute investment advice.
