The XRP price has taken a sharp downturn, losing 5% over the past 24 hours as investor sentiment weakens in response to a disclosed security threat and shifting market dynamics. Currently trading around $2.16, XRP faces pressure from both internal vulnerabilities and broader crypto market fluctuations.
Security Flaw in XRP Ledger Library Shakes Confidence
A significant factor contributing to XRP’s recent decline is a newly discovered backdoor vulnerability in the XRP Ledger’s JavaScript codebase. This alarming revelation has disrupted investor confidence and raised broader security concerns.
The vulnerability was first detected on April 21 by Aikido Security, which reported that cybercriminals had compromised the npm package used in the XRP Ledger ecosystem. According to the report, the attackers embedded a malicious backdoor capable of capturing private keys and compromising crypto wallets.
On April 22, the XRP Ledger Foundation acknowledged the issue in an official statement, confirming they were informed of the vulnerability and were actively addressing it. Developers have since updated the npm repository to remove the affected versions, mitigating any immediate risk. While there are no reports yet of successful exploitation, the discovery has reignited concerns over supply chain attacks and software dependencies.
Declining Open Interest Reflects Reduced Confidence
In addition to security concerns, falling open interest (OI) has added downward pressure on XRP’s valuation. Over the last 24 hours, XRP’s OI shrank by 6.7%, dipping to $3.90 billion. This decline often signals decreasing trader engagement and optimism, when coupled with price drops.
Adding to the bearish sentiment, $11.61 million worth of long positions were wiped out in the same timeframe, compared to just $1.58 million in short liquidations. The large disparity suggests that bullish traders were caught off guard and forced to exit their positions at a loss, fueling more selling pressure.
Further data shows the 24-hour long/short ratio dropping to 0.9399 and trading volume declining by 22% to $8.82 billion—signs that bullish activity is cooling.
Technical Indicators Signal Potential Reversal
From a chartist’s point of view, the current XRP price action may simply be part of a larger bullish formation. Analysts observe that XRP/USD is undergoing a correction within a bull flag pattern—typically a pause before resuming a broader upward trend.
If XRP can achieve a four-hour candle close above $2.18 and later break out above the $2.30 level, supported by strong volume, the next target of $2.42 becomes viable.
Despite current setbacks, XRP remains above its major moving averages, which is often viewed as a bullish sign. However, if the price slips below $2.18, it may re-test the support zone between $2.10 and $2.13, which aligns with the 50-day and 200-day simple moving averages (SMA).
Prominent market analyst Dom noted that a breakout above the $2.20 resistance level would be a key trigger for a possible rally toward $2.40 or higher in the near term.
Although today’s drop caught investors off-guard, the fundamentals underlying XRP’s larger trajectory remain largely intact. Traders should continue to monitor technical levels and developer updates as the market digests the security incident and looks ahead to potential recovery.
For a live price chart and latest data, see the XRP price index.
This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making financial decisions.
