- XRP drops 6.25% as high volume fails to counter strong selling momentum
- Key support at $2.90 under pressure as technical indicators flash bearish signs
- $28.3M in XRP liquidations reveal dominant losses from overleveraged long traders
Ripple’s native token, XRP, faced strong selling pressure over the past 24 hours, marking a sharp 6.25% decline. As of today, August 1, the token’s price has dipped from a high of $3.1583 to $2.95.
The downward move places XRP near a key support zone, and traders are watching closely for signs of either stabilization or deeper losses. Despite a notable rise in trading volume, buyers struggled to hold critical levels, hinting at stronger bearish sentiment across the market.
Rising Volume, Falling Price: A Contradiction in Sentiment
Interestingly, XRP saw a 14.01% increase in 24-hour trading volume, totaling $7.53 billion. Typically, rising volume supports price movement. However, in this case, the higher volume accompanied a steep decline, suggesting sell orders dominated the market. This divergence is a strong indicator that sellers are currently in control.
Market capitalization also reflected the bearish move, falling 6.14% to $175.09 billion. Although the circulating supply remains unchanged at 59.38 billion XRP, the fully diluted valuation (FDV) sits at $295.22 billion. This suggests that if all tokens were in circulation, XRP could face additional downward pressure.
Key Technical Levels and Indicators
XRP’s price action shows clear signs of a short-term bearish trend. The descending price line points to steady selling. Resistance sits at $3.1583, where the token met strong selling pressure. Another resistance zone lies around $3.10 to $3.12, a level of brief consolidation before the continued decline.
On the downside, the $2.90 mark is acting as crucial support. The price has tested this level twice, bouncing back both times. Should XRP break below $2.90, a move toward $2.85 or lower is likely.
Momentum indicators confirm the bearish outlook. The MACD histogram has turned negative (-0.07065), indicating weakening upward momentum. Additionally, the MACD line has dropped below the signal line, reinforcing the bearish sentiment. Meanwhile, the RSI currently sits at 48.33, signaling a neutral stance but showing a decline from recent highs.
Liquidation Data Highlights Weak Market Confidence
In the derivatives market, XRP recorded $28.3 million in liquidations over the past day. A $27 million came from long positions, reflecting misplaced bullish bets. Short positions made up only $1.4 million of the total.
Bybit led the exchanges in liquidation volume, followed by Binance and OKX. Other exchanges like BitMEX, Huobi, and Bitfinex showed minor liquidation activity.
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