XRP fell below its 200-day moving average this week, trading about 4% lower than the key technical marker. This development reinforces concerns that Ripple’s performance is lagging behind the broader cryptocurrency market, especially as Bitcoin holds stronger ground.

The 200-day moving average (DMA) is a long-term trend indicator that helps investors gauge the direction of a stock or asset. When the trading price remains above the 200-DMA, it’s typically seen as a sign of bullish momentum. Conversely, a drop below this level often indicates losses in momentum and potential bearish sentiment. Due to its significance in both trading ideas and market psychology, the 200-DMA is a widely referenced measurement by chart analysts and institutional investors alike.

Recent Test of Key Support Levels

Ripple’s native token, XRP, recently traded at $326, falling beneath the 200-DMA benchmark of $340. This breakdown invites comparison to similar episodes in past cycles.

Notably, back in April 2025 during heightened market volatility linked to geopolitical uncertainty, XRP tested its 200-DMA before stabilizing and rebounding. A similar event occurred in the summer of 2024, showing XRP’s recurring tendency to find support near this level before recovering. Whether the current price slip is a temporary deviation or the beginning of a bearish cycle remains uncertain, with many investors closely watching Bitcoin’s trend for cues.

A chart showing XRP trading below its 200-day moving average, indicating possible weakness in trend.

Short Sellers Gain Ground

Well-known short-seller James Chanos has voiced his bearish position on Ripple recently, opening a notable short position by betting against XRP while maintaining long exposure to Bitcoin. This strategy appears to be paying dividends, as XRP has dropped by 21% over the past month, compared to only a 3.5% decline in Bitcoin, enhancing the gap in performance between the two assets.

Technical analyst J.C. Parets shared insight on the deteriorating XRP/Bitcoin ratio. He observed that the comparison between XRP and Bitcoin (as represented by IBIT, BlackRock’s spot Bitcoin ETF) has plummeted to its weakest point in five months. “This one is accelerating quickly,” Parets commented, underscoring the momentum behind XRP’s weakening position.

Ripple Faces Pressure Despite Historic Correlations

Ripple has long been perceived as a close counterpart to Bitcoin in investor portfolios, yet recent sentiment shows divergence. While historical price movements often mirrored one another to a degree, this new deviation highlights shifting preferences among crypto investors.

As XRP slips beneath technical support levels, analysts suggest that only a reversal in broader investor sentiment—or stable consolidation in Bitcoin—could inject the momentum Ripple needs to reclaim its footing. Until then, the market may continue to favor Bitcoin over XRP as its resilience in volatile conditions increasingly appeals to larger institutions and retail traders alike.

Related: XRP Price: $12M Max Pain for Bears

Investors and traders will continue watching closely to see if this break below the 200-DMA holds or if XRP, like in past instances, manages another rebound. Market signals, institutional movements, and Bitcoin’s price trajectory are the critical variables influencing Ripple’s near-term prospects.