XRP and Dogecoin Prices Plummet as Selling Pressure Intensifies: Is This a Buying Opportunity or the Start of a Deeper Rout?

The crypto market's mood turned sharply bearish as two of its most recognizable altcoins, XRP and Dogecoin, faced a brutal wave of selling pressure. The declines weren't gentle corrections—they were sharp, headline-grabbing plunges that sent shockwaves through trader chats and portfolio trackers.

Anatomy of a Sell-Off

Forget gradual slides. This was a classic capitulation event, where momentum selling begets more selling. Liquidity thinned out at key support levels, and stop-loss orders triggered in a cascade. The usual suspects—macro fears, sector rotation, or a major wallet move—likely provided the spark, but the tinder was dry sentiment and over-leveraged positions.

Community Sentiment vs. Cold Charts

The 'HODL' memes and diamond-hand emojis were quickly drowned out by red candlesticks. While dedicated communities rallied online, the charts told a simpler, harsher story: supply overwhelmingly outstripped demand. It's a timeless market lesson—narrative might drive the long-term vision, but physics governs the immediate price action. Every rally needs fuel, and right now, the tanks are looking empty.

The Silver Lining Playbook

History's lesson for crypto veterans? Volatility cuts both ways. These violent shakeouts often flush out weak hands and reset overextended markets, laying the groundwork for the next leg up. For disciplined investors with dry powder, such episodes aren't signals to panic; they're reminders to update watchlists and consider strategic entry points—because in crypto, the difference between a crisis and an opportunity is often just a matter of timeframe and conviction.

Let's be honest—sometimes the market doesn't need a complex reason to fall. It just needs an excuse to take profits, a practice still refreshingly novel in some corners of traditional finance where 'holding' means waiting for a quarterly report to explain why you're down.

The cryptocurrency market faced significant selling pressure at the start of the week. Ripple$2’s XRP dropped by 7% to $2.00, while Dogecoin$0.14279 fell by 9% to $0.137. Despite inflows into ETFs, institutional investors’ heavy selling pushed prices below critical support levels, indicating a decline in overall market risk appetite.

XRP’s Consolidation Structure Disrupted

The loss of the $2.16 support level for XRP revealed the breakdown of a three-week lateral trend. With daily trading volume reaching 309 million coins, it was confirmed that professional investors were exiting. Although the price fell from $2.21 to $2.00, ETF inflows failed to balance the short-term selling wave.

Data indicates that spot XRP ETFs, including 21Shares’ new TOXR ETF, saw an inflow of $666.6 million in November. However, XRP supply on exchanges decreased by 45% during the same period, with whale wallets collecting 150 million XRP since November 25th. Liquidity rapidly contracted due to derivatives positions unwinding. Technically, losing the $2.05–$2.00 range could lead to a drop towards the $1.80–$1.87 demand zone. Conversely, closing above $2.16 could strengthen the bullish scenario again.

Dogecoin ETFs Fall Short of Expectations

Dogecoin’s selling pressure accelerated after breaking the $0.1495 support level. The weak demand of $2.16 million for spot Doge ETFs, launched by Grayscale and Bitwise, failed to bring the anticipated institutional interest. Market participants reduced their positions amid high volatility and low liquidity conditions, with volume reaching 1.56 billion coins, six times the daily average. This heavy trading volume indicated algorithmic sales and liquidations.

Technical indicators provided by CryptoAppsy suggest oversold signals for DOGE, yet there is no indication of a momentum reversal. The price has been moving laterally within the $0.1370–$0.1383 range. The $0.1495 level now serves as a strong resistance, and a dip below $0.1350 could deepen the sell-off to $0.1320. On the contrary, a volume-backed recovery within the $0.1420–$0.1450 band might be the first sign of a return in buyer interest.