- XRP faces critical support at $1.62, risking further declines if broken.
- Surge in volume signals heightened uncertainty, possibly from whale activity.
- RSI near oversold levels suggests potential for a short-term bounce.
XRP’s price action has taken a sharp downturn recently, raising concerns among traders and investors alike. After briefly surpassing the $2 mark, XRP’s price has dropped significantly, touching a low of $1.62. This price movement signals that the asset could be facing further losses, especially if key support levels fail to hold.
Price Trends and Volatility
XRP’s price began the day at approximately $2.06 before experiencing a strong decline. By the time it hit the $1.62 low, the price had already lost over 13% in a 24-hour period. However, a slight recovery was seen in the $1.70 to $1.75 range, suggesting temporary consolidation.
This volatility highlights the importance of monitoring key levels, as any further breakdown below these points could lead to deeper losses. The surge in trading volume, which increased by 490%, indicates that the market is reacting to heightened uncertainty. This could point to panic selling or significant whale activity.
Support and Resistance Levels
For traders, the next few days could prove pivotal. XRP’s primary support lies at $1.62, which was tested earlier in the session. A drop below this level could trigger additional downside momentum.
Short-term support is observed around $1.70, where XRP has shown some resilience. However, if the price fails to hold this level, further declines are likely.
On the upside, $1.90 acts as a critical resistance, with multiple rejections observed at this level. Additionally, the $2.06 mark, which was the day’s high, remains a significant resistance point for any bullish attempts to recover.
Liquidation Data and Market Sentiment
XRP’s liquidation chart paints a clear picture of trader overexposure. Spikes in long liquidations were noted when the price neared $2.50, highlighting excessive bullish positioning.
Conversely, short liquidations surged around the $1.00 to $1.50 range, as the price dropped. The increased liquidation volumes, especially above $37 million, signal that a large number of positions are over-leveraged. This pattern suggests that XRP’s price could be extremely sensitive to both upward and downward movements, making it a volatile asset for traders.
Technical Indicators Point to Oversold Conditions
Looking at the Relative Strength Index (RSI), XRP is nearing oversold territory with a current reading of 30.88. This indicates that the asset might experience a short-term bounce, particularly around the $1.70 to $1.75 support region.
Historically, similar RSI levels have led to brief relief rallies. However, the Moving Average Convergence Divergence (MACD) remains bearish, with increasing downside momentum. The MACD line is well below the signal line, suggesting that the current trend is unlikely to reverse soon without significant support from the market.
