XRP experienced a significant selloff as the broader cryptocurrency market faced an overall downturn, leading to a wave of long liquidations that pushed its price below a crucial support level. After the rapid decline, buyers began to tentatively step in around the $1.74 mark.
In the context of a larger trend, XRP’s decline can be attributed primarily to the general weakness seen in cryptocurrencies, with Bitcoin’s performance heavily influencing high-beta tokens like XRP. The drop was more about positioning than any specific news related to the token itself; as vital support levels faltered, leveraged long positions were liquidated.
Data from derivatives markets revealed that over $70 million worth of XRP futures were liquidated, predominantly from long positions. This indicates that the market had been heavily positioned in a bullish manner prior to the selloff, which exacerbated the downward pressure when selling intensified.
During the price action, XRP experienced a drop of approximately 6.7%, falling from $1.88 to a low of $1.75. The key support level of $1.79 failed during this downturn, with trading volume spiking significantly, suggesting that forced selling took place.
After hitting a session low of around $1.74, XRP price eventually stabilized within a narrow range of $1.74 to $1.76 later in the trading session. Technical analysis shows that the decisive break below $1.79 triggered a cascade of liquidations, underscored by high volume that indicates active institutional involvement.
Efforts for a rebound followed, but recovery attempts were met with resistance as price actions struggled to surpass $1.76, and the volume of trades decreased during the bounce, hinting at a stabilization phase rather than a full reversal. The previous support range of $1.79 to $1.82 has now turned into resistance, which poses challenges for any significant upward movement until this area is convincingly reclaimed.
Traders are now cautious as they assess what is next for XRP, with many looking for signs of stronger buying interest to confirm the stability of the price or further downward pressure if resistance remains unbroken.