XRP recently witnessed a significant upswing, climbing above $2.50 and achieving more than 400% gains following its breakout from $1. The impetus behind this rally was Ripple’s advancements in its legal tussle with the SEC, combined with the recent drive for well-defined crypto regulations in the industry. However, XRP encountered an obstacle at $2.40 and subsequently entered a downward trajectory.
During the slump, a staggering $53 million in long positions were liquidated in a single day, in contrast to short liquidations which amounted to $13 million. More recently, $12 million in long positions and $4.2 million in short positions were liquidated, exerting mounting pressure on XRP’s price.
On-Chain Data reveals that numerous small investors have divested from their holdings, and it is suspected that larger investors, or “whales,” may also be offloading as the price battles to sustain its support level.
Presently, all attention is focused on the $2.00 mark. This price point is a crucial juncture that typically serves as either a robust support or a trigger for further declines. Should XRP dip below $2.00, analysts anticipate a potential further plunge to $1.88 or even $1.75, given the likelihood of a rapid accumulation of liquidations.
Technical indicators echo a similar sentiment. The daily Relative Strength Index (RSI) has declined from overbought territory to 60.65, signifying a waning bullish impetus. The On-Balance Volume (OBV) also reflects diminished buying activity, and the MACD is flagging an escalation in selling pressure.
If XRP manages to rebound from $2.00, it could potentially recover to $2.50 or higher, thereby maintaining the bullish momentum. Nevertheless, a failure to uphold this support level could precipitate sharp price fluctuations and complicate the path to recovery.
As of now, the cryptocurrency has declined by 9% to $2.18, accompanied by a 9% reduction in market capitalization to $124 billion, as per data from CoinMarketCap.
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Ripple’s Investment in Bitwise’s XRP ETP and Market Developments
XRP’s Bullish Momentum: On-Chain, Technical and Market Forces at Play
