Bitcoin, Ethereum, Solana, and Ripple witnessed declines due to market selling pressure. Ripple’s XRP experienced a notable drop after breaking the critical support level at $0.556, resulting in $11.2 million in long and short positions being liquidated.
What Happened with XRP’s Price?
Upon losing the support level, XRP’s price plummeted to $0.43 before rebounding to $0.46. The decline coincided with Ripple releasing 1.8 billion XRP tokens into the market, increasing the circulating supply. Despite this dip, major investors transferred 75.36 million XRP tokens, worth $40.2 million, from Binance to an unknown wallet, indicating strategic purchasing by whales.
How Does XRP’s Price Stand Now?
Currently, XRP is trading at $0.46, marking a 14.5% drop within the last 24 hours. Concurrently, trading volume decreased by 35%, reflecting market fear. The Open Interest (OI) for XRP also fell by 7%, signaling reduced interest from investors.
Technical analysis shows that XRP remains in a bearish trend after failing to hold the critical support at $0.556. The price could not sustain the 200 EMA level of $0.52, leading to further negative sentiment among traders and investors. An additional 10% price drop from current levels is anticipated.
Critical Liquidation Levels
The primary liquidation levels for XRP are set at $0.42 and $0.40. If XRP dips below $0.426, approximately $17.09 million in short positions will be liquidated. Conversely, if XRP rises to $0.52, $32.41 million in short positions will be liquidated.
Investor Insights
Key inferences for investors are as follows:
- Strategic whale movements suggest potential market recovery.
- Critical support and resistance levels could trigger significant liquidations.
- Continued bearish trends might lead to further price declines.
Despite recent market fluctuations, Ripple’s XRP continues to garner attention. The previous rise to $0.65 had briefly revived investor optimism, but the latest drop has shifted the focus back to whether a further 10% decline is imminent.