- A rebound to $2.62 could trigger $20.5 million in short liquidations for XRP.
- XRP’s volatility spikes with price fluctuations, driving liquidations in both directions.
- Key support at $2.17 and resistance at $2.52 will determine XRP’s short-term trend.
XRP, in terms of price movements, has been very unpredictable and has led to large liquidations of both short and longs in the past few days. Analyst Ali Martinez highlighted an important level at $2.62.
If XRP rebounds to this point, a massive $20.5 million in short positions will be liquidated. This would trigger a sharp price movement, making it crucial for traders to monitor the support and resistance levels that are currently in play.
XRP’s Recent Liquidation Activity: Key Insights from Analysts
The liquidations seen over the past 24 hours highlight the intense market sentiment surrounding XRP. As per Coinglass data, long liquidations have spiked as the price faced a pullback, with $20.02 million worth of long positions liquidated.
On the other hand, short positions were hit hard during the rally, with $7.21 million in short liquidations. This activity shows how volatile XRP’s price can be, especially when traders are caught off guard by sudden price movements.
The recent liquidation data highlights the volatility of XRP. Long liquidations spiked during price corrections after XRP peaked around $2.50 in December.
In contrast, when XRP was trading below $1.50 earlier this year, liquidations remained subdued, signaling that market activity intensifies during more extreme price fluctuations.
Bearish Correction Continues as XRP Faces Key Support Levels
Dark Defender’s analysis suggests that XRP’s correction is ongoing. According to his analysis, XRP recently touched the $2.72 level before retracing towards its support at $2.17. This level is seen as a key point for the cryptocurrency. If XRP holds above $2.17, it could experience a double tap, where it tests the support level again before attempting to break higher.
However, a dip below this point could bring the $2.09 level into play, signaling a deeper bearish trend. Consequently, traders should be vigilant for any signs of further downside pressure.
Key Resistance and Support Levels for XRP: What’s Next?
The resistance level depicted by XRP has been useful to determine the price action and the direction probably going forward. This $2.50 that used to be a strong resistance level has now been cut to $2.52. XRP is expected to trade above the said level with an upside target toward $2.62 to put an end to the correction phase.
On the other hand, if the price does not go beyond this level of resistance, it is likely to continue sliding down. The next technical level of importance is $2.20 which has been a support level in the past. If bulls do not defend the price above $2.20, there will be a decline in the value to $2.00, a psychological level.
Momentum Indicators Signal Bearish Sentiment
Considering the momentum indicators, XRP’s RSI is 37.96, which means bearish momentum. The market has arrived at oversold territory, but it is not at extreme levels yet. The MACD is also shoving forward bearish signals as the MACD line is below the signal line.
The histogram indicates that bullish momentum is being weakened, which is in line with the overall bearish sentiment. If XRP can reclaim the $2.35 resistance, the market sentiment could turn bullish hence attempting a retest of $2.50.
At the time of writing, XRP is at $2.23, which is 5.61% down within the last 24 hours. Having a 24-hour trading volume of over $21 billion, the market continues to attract attention and traders are focused on the developing price pattern.